Tesla Inc sales in Europe have taken a significant hit, with the latest figures indicating a 40% decline in February. This sharp drop has led to speculation that CEO Elon Musk’s increasing involvement in politics, particularly his support for Donald Trump and his stance on the Russia-Ukraine war, may be hurting the brand.
What’s Behind the Decline?
Musk’s political push has been met with controversy, and his comments on sensitive topics have sparked outrage in some quarters. The billionaire’s allegiance to Trump and his stance on international conflicts may have alienated European consumers, who are increasingly opting for alternative electric vehicle brands.
Sales Figures: A Closer Look
The data for February shows a significant decline in Tesla sales across major European countries:
- France: 2,395 units, down 35.4% year-over-year
- Norway: 917 units, down 48.4% year-over-year
- Sweden: 613 units, down 42.4% year-over-year
- Denmark: 509 units, down 53.1% year-over-year
The total sales for these four countries stood at 4,434 units, a 38.2% decline from the previous year. This trend continues into 2025, with January sales also showing significant declines:
- France: -44.4%
- Norway: -45.3%
- Sweden: -43.9%
- Denmark: -48.1%
- Total: -46.2%
Is Musk’s Politics Hurting Tesla’s Brand?
A Brand Finance survey found that Musk’s comments may have hurt Tesla’s brand value, which dropped by 26% to $43 billion in 2025. The company’s scores in categories such as reputation, recommendation, and consideration also fell from the previous year.
Tesla’s Stock Performance
Tesla stock is down 1.3% to $281.08, with a 52-week trading range of $138.80 to $488.54. The stock is down 25.8% year-to-date in 2025, erasing gains made after Donald Trump’s presidential election victory.
What’s Next for Tesla?
As more European markets report their February sales figures, it will be interesting to see if the decline in Tesla sales continues. Germany, the United Kingdom, the Netherlands, Spain, and Portugal are among the countries yet to release their figures. With Musk’s political involvement showing no signs of abating, it remains to be seen how Tesla will navigate this challenging landscape and restore its brand value.