Billionaire entrepreneur and CEO Elon Musk’s electric vehicle (EV) company, Tesla Inc., has experienced a significant decline in sales across Europe, suggesting that Musk’s political activities may be negatively impacting the automaker’s performance in this key EV market, according to Bloomberg.
In Germany, Tesla’s sales plummeted by 59%, with only 1,277 new vehicles registered in January, marking the lowest sales figures since July 2021, as reported by the German Federal Motor Transport Authority. This decline comes despite a 54% increase in the overall EV market during the same period. A poll cited in the report indicated that Musk’s political views are viewed unfavorably, and his interventions in Germany have not been well received by the public.
In addition to Germany, Tesla’s sales also fell in France and the UK last month, reflecting a downturn in the three largest EV markets in Europe. Specifically, sales in France dropped by 63%, while the UK saw a 12% decrease, according to the agency’s data.
Musk recently hosted a live discussion on his social media platform X with AfD leader Alice Weidel, a party that opposes Tesla’s plans for a factory near Berlin and has a skeptical stance on renewable energy. His comments referencing Nazi wartime atrocities and advising against excessive focus on historical guilt ahead of the 80th anniversary of the liberation of Auschwitz sparked outrage in Germany.
Beyond political factors, Tesla has had a challenging start to the year, as the company is currently making adjustments to its assembly plants to produce a redesigned version of the Model Y, resulting in several weeks of lost production. After exceeding delivery estimates in the fourth quarter, Tesla fell short of its modest growth forecast for the full year.
Meanwhile, competitors such as Volkswagen AG and BMW AG have gained market share in Germany’s EV sector, while Tesla has seen a decline. Following these developments, Tesla Inc. shares closed down 3.58% at ₹378.17 after Wednesday’s market session and were trading 1.62% lower in pre-market activity ahead of Thursday’s opening.
