According to The Guardian, Tesla’s new car sales in Europe nearly halved last month, signaling a decline in demand for the US automaker’s vehicles. This drop coincides with CEO Elon Musk’s increasing involvement in political matters on both sides of the Atlantic. Data from the European Automobile Manufacturers’ Association (ACEA) revealed that Tesla sold 9,945 vehicles in Europe in January, a 45% decrease from 18,161 in the same period last year. Tesla’s market share also fell to 1% from 1.8%.
Analysts suggest that Musk’s political interventions, including his support for far-right parties and criticism of left-wing politicians, may be contributing to a consumer backlash. Musk, a close advisor to former US President Donald Trump, has recently voiced strong support for Germany’s far-right AfD party, calling it the “best hope for the future” in Germany. He also congratulated AfD co-leader Alice Weidel after the party doubled its support in Germany’s national election. Additionally, Musk waded into UK politics by accusing Keir Starmer and other senior politicians of covering up a grooming gang scandal, despite a lack of evidence.
European leaders, including French President Emmanuel Macron, have criticized Musk’s social media posts backing far-right parties and attacking left-wing politicians. Tesla’s sales in Germany dropped to 1,277 vehicles, the lowest since July 2021, while sales in France plummeted by 63%, marking the worst performance since August 2022. In the UK, Tesla was outsold by its Chinese rival BYD for the first time, with Tesla’s sales falling by nearly 8% in a growing electric vehicle (EV) market that expanded by 42% last month.
Despite Tesla’s struggles, the European battery-electric car market grew by 34% in January, reaching 124,341 units and capturing a 15% share of the total car market. Three of Europe’s four largest EV markets—Germany (+53.5%), Belgium (+37.2%), and the Netherlands (+28.2%)—saw double-digit growth, while France experienced a slight dip of 0.5%. Overall, the European car market shrank by 2.1% in January, with major markets like France, Italy, and Germany recording declines, while Spain saw a 5.3% increase.