Tesla sales plummet in Europe as Elon Musk faces Trump backlash
Tesla is facing dramatic sales drops across Europe as the electric car maker faces backlash over Elon Musk’s active role in the Trump administration.
Musk, whose Department of Government Efficiency has swiftly sought to defund portions of the US government, has meanwhile angered left-leaning and centrist political factions in Europe with his embrace of far-right figures.
In Europe, Tesla has suffered severe losses in traditionally strong regions.
Elon Musk has taken an active role in the Trump administration. AP
Sales in France plummeted 63% in January compared to the same month a year earlier.
In Germany, the decline was nearly as sharp, with sales falling 59.5%.
Analysts have pointed to growing resistance against Musk, particularly after his perceived endorsement of the far-right Alternative for Germany (AfD) party.
This marks Tesla’s weakest January sales performance in Germany since 2021.
The company’s struggles are not limited to mainland Europe.
In the UK, Tesla sales have also slipped, while Scandinavian markets, where electric vehicles have been widely adopted, are seeing similar patterns.
Musk is stirring political controversy in the UK by advocating for the release of far-right activist Tommy Robinson from prison.
Robinson is currently serving a prison sentence for violating an injunction, but he has a history of legal troubles, including previous jail time for assault and contempt of court.
Tesla’s stock has fallen by more than 13% in the last month. Google
Musk has repeatedly posted in his defense, questioning why Robinson is in solitary confinement and suggesting that he was imprisoned for “telling the truth” about alleged grooming gangs in the UK.
The Tesla chief has also been highly critical of the British prime minister, Keir Starmer.
French Prime Minister François Bayrou last month criticized Musk, warning that the billionaire poses a threat to democracies.
In a television interview, Bayrou argued that wealth should not grant individuals the power to influence public opinion and decision-making.
In Sweden, new Tesla registrations were down 44% from last year, while Norway recorded a 38% drop in the same period.
Musk last month addressed a campaign rally staged by the far-right AfD, a German political party running in the upcoming elections. Getty Images
Tesla workers in Sweden have launched a strike that began more than a year ago.
It is the longest work stoppage in a century in the Scandinavian country.
Perhaps more concerning for Tesla is the downturn in China, one of its most critical markets. January sales fell 11.5% compared to the previous year — while local competitor BYD reported a nearly 50% percent surge in sales.
Tesla’s stock has been under pressure. As of Tuesday morning, shares were trading around $350, a significant drop from their December peak of approximately $480.
In the last month, shares of Tesla have fallen 13% — though its stock is still up more than 86% in the last 12 months.
Following the 2024 election, Musk found himself on the winning side of the political landscape, a shift that initially coincided with a sharp rise in Tesla’s stock.
Sales of Tesla have declined by double-digit percentage points in places like Europe and China. via REUTERS
His net worth soared by an estimated $170 billion as investor optimism drove share prices higher.
However, the tide now appears to be turning.
Tesla reported its first annual decline in vehicle deliveries last year, marking a significant shift for a company that has long been a dominant force in the EV market.
The downturn has continued into 2025, with troubling signs emerging across several key markets.
Mike O’Rourke, chief market strategist at Jonestrading, suggested in a recent research note that Musk’s political alignment might be playing a role in Tesla’s setbacks.
“There is an argument to be made that Tesla is beginning to be penalized for Musk’s close relationship to Trump,” he wrote, as reported by Bloomberg.
Adding to the turmoil, Tesla dealerships have recently been targeted in acts of vandalism.
Analysts are concerned that Musk’s ties to Trump could adversely affect Tesla sales going forward. via REUTERS
A dealer in Colorado was defaced with graffiti and had its windows shattered last week — the third such attack in just two weeks.
Authorities are investigating whether Musk’s political affiliations may have fueled these incidents.
Tesla executives have also acknowledged the potential risks associated with shifting trade policies.
The company’s chief financial officer, Vaibhav Taneja, recently warned during an earnings call that tariffs imposed on manufacturing components could disrupt the company’s operations.
“Over the years, we’ve tried to localize our supply chain in every market, but we are still reliant on parts from across the world,” Taneja said, emphasizing that any new restrictions would have consequences for Tesla’s bottom line.
The company has not introduced a new model since launching the Cybertruck in late 2023. While there have been discussions about unveiling a more affordable Tesla model in 2025, no concrete timeline has been announced.
The Post has sought comment from Musk.
