Saturday, August 23, 2025

Tesla European Sales Crash as Musk’s Political Activities Alienate Buyers

Tesla‘s (Nasdaq: TSLA) European sales plummeted 45% in January compared to the previous year, data showed, as CEO Elon Musk’s increasingly partisan political activities appear to be damaging the electric vehicle maker’s appeal in key markets.

The American automaker delivered just 9,945 vehicles across Europe last month, down from 18,161 a year earlier, according to figures from the European Automobile Manufacturers’ Association. The collapse comes at a time when the broader European electric vehicle market grew by 37%.

In Germany, traditionally one of Tesla’s strongest European markets, the company only sold 1,277 new vehicles in January — its worst showing there since mid-2021. France, meanwhile, saw a steep 63% decline.

Market analysts attribute the sales slump to a combination of Musk’s controversial political statements, increased competition from European manufacturers, and production challenges as the company transitions manufacturing lines.

Tesla’s sales collapsed as Musk ramped up his involvement in European political debates. In January, the CEO hosted a livestream with Alternative for Germany party leader Alice Weidel on his social media platform X. The far-right party recently placed second in German elections.

Further controversy erupted when Musk urged Germans to focus less on “past guilt” shortly before the anniversary of the liberation of Auschwitz, comments that drew widespread criticism across Europe.

YouGov polling data shows Musk’s favorability ratings have declined significantly in both Germany and the United Kingdom, where he publicly called for the imprisonment of Prime Minister Keir Starmer while advocating for the release of far-right activists. 69-73% of respondents in both countries say that Musk’s attempts to influence politics in Germany and the UK are unacceptable.

Back home in the US, Musk has become more deeply and controversially involved in politics, primarily through his role leading the Department of Government Efficiency in the Trump administration. And here, unsurprisingly, a recent Washington Post-Ipsos poll also showed that 49% of respondents disapproved (with 41% strongly disapproving) of his work in DOGE.

Read: Musk’s Federal Worker Ultimatum Backfires as Agencies Assert Authority

Tesla shares fell another 8% Tuesday to $302.80, pushing Musk’s net worth down by approximately $100 billion since mid-December, according to Bloomberg’s Billionaire Index. The company’s market capitalization has now fallen below $1 trillion.

Tesla struggles with manufacturing hurdles as it reconfigures assembly lines for its best-selling Model Y. During January’s earnings call, CFO Vaibhav Taneja projected significant production losses, creating inventory shortages just as European rivals accelerate their electric vehicle offerings to meet tightening emissions standards.

Meanwhile, European competitors Volkswagen, Stellantis, and Renault are ramping up their electric vehicle offerings as they face stricter CO2 emissions targets in 2025.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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