Tesla, one of the largest electric vehicle companies in the world, is facing a significant decline in sales in certain parts of the world, possibly due to CEO Elon Musk’s deeper involvement in politics.
Sales Decline in Germany
Recent sales data for electric vehicles in 2024 shows that Tesla’s market share and overall unit sales are declining in regions, including the United States. In Europe, Tesla’s sales are taking a sharp hit, with a notable decline in Germany. According to a report, Tesla’s sales in Germany for the month of January were 1,277 units, down 59.5% year-over-year.
European Market Sales Figures
The sales decline is not limited to Germany, as several European markets have seen sharp declines in January. The sales figures are as follows:
- Germany: -59.5%
- United Kingdom: -18.2%
- France: -63.4%
- Netherlands: -42.5%
- Norway: -40.2%
- Spain: -75.4%
- Sweden: -46.0%
- Denmark: -40.9%
- Portugal: -31.0%
The overall drop was 50.4% year-over-year in January for the countries above combined.
Impact of Musk’s Politics
The decline in sales is believed to be due to the launch of the Model Y refresh and Musk’s political push. Musk has shown support for the far-right German party Alternative for Germany and recently spoke virtually at the party’s rally. During his appearance, Musk downplayed the importance of moving on from Germany’s past, potentially referencing the Nazi party and World War II.
Consumer Reaction
Musk’s comments have sparked a call for a boycott in Poland, with the country’s Sports and Tourism Minister, Slawomir Nitras, urging consumers to avoid Tesla. A Brand Finance survey showed that Tesla’s brand value declined by $15 billion in 2024, dropping Tesla from 36th place to 18th place. Consumers are less likely to recommend or consider buying a Tesla vehicle, with some citing Musk’s politics as the reason why.
Tesla Stock Performance
Tesla stock is down 3.2% to $366.19, with a 52-week trading range of $138.80 to $488.54. The stock is now down 3.5% year-to-date in 2025, but remains up 97.8% over the past year.
Conclusion
While Musk has a loyal fan base, the data suggests that his deeper push into politics in America and Europe could have a drastic impact on Tesla’s sales and market share in regions around the world. As the electric vehicle market continues to grow, it will be interesting to see how Tesla navigates the challenges posed by Musk’s political involvement.