Tesla has reported a significant decline in sales across Britain and Europe, with figures indicating a 45.2 per cent decrease in the European Union, Britain, and the European Free Trade Area in January. According to the European Automobile Manufacturers Association (ACEA), the electric vehicle giant sold just 9,945 units throughout Europe in the first month of 2025, a notable drop from 18,161 units during the same period in the previous year. This decline is particularly notable as overall electric vehicle sales in the region rose by 42 per cent during the same timeframe.
In specific markets, Tesla experienced severe setbacks. In Germany, the company sold merely 1,277 vehicles, marking the lowest sales figures since July 2021. Sales in France saw a drastic reduction of 63 per cent, while the UK reported an almost 8 per cent decrease in Tesla sales.
The downturn in vehicle sales coincides with heightened political activity by Tesla’s CEO, Elon Musk, who is currently under scrutiny for his recent political interventions in Europe. Musk, known for his supportive stance towards former US President Donald Trump, has engaged with far-right groups in Europe and has been vocal in his criticisms of prominent political figures such as Sir Keir Starmer. His actions, including attending a rally for the far-right Alternative for Germany (AfD) party and congratulating its leaders for significant electoral success, have drawn mixed reactions from the public. Recent YouGov polls highlighted that Musk's popularity has waned substantially, with 71 per cent of respondents in both the UK and Germany expressing negative opinions about him.
Controversy surrounding Musk escalated following a gesture he made at the inauguration events for Trump, which has been interpreted by some as reminiscent of a Nazi salute, a claim that Musk has denied. In London, activists took to the streets, pasting a mock-up Tesla advert at a bus stop depicting Musk involved in the contentious gesture, with the provocative text “from 0 to 1939 in 3 seconds,” in reference to the rise of the Nazi regime.
The AfD has seen an unprecedented rise in popularity, recently winning over 20 per cent of the vote, marking its status as the main opposition party in Germany for the first time since World War II. Following the election results, Musk made a phone call to the party's leadership, projecting confidence in their potential for future victories.
Musk’s rhetoric has spurred some backlash among Tesla owners, with reports of a rising trend where individuals are using bumper stickers to disassociate from Musk, particularly since his closer alignment with far-right political movements. One vendor noted a surge in sales of stickers reading “I Bought This Before We Knew Elon Was Crazy,” indicating a consumer response to Musk's political stances.
While Musk’s political involvement may contribute to Tesla's declining sales, other factors are also influencing the market. The electrical vehicle industry is increasingly competitive, with traditional automakers such as Volkswagen and Renault ramping up their electric vehicle offerings. Moreover, the decline in sales preceded the launch of Tesla's new model, which is an updated version of the best-selling Model Y SUV.
In summary, the combination of dwindling sales figures, Musk's controversial political activities, and increasing competition in the EV market presents a challenging landscape for Tesla as it navigates the complexities of consumer sentiment and market dynamics in Europe.
Source: Noah Wire Services