Tesla's Tumultuous European Sales: Halved since New Year, Blamed on Elon Musk's Politics, Model Changes, and Intensified Competition
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- Intensifying Tesla predicament: European sales plummet by half
Tesla, the well-known electric vehicle manufacturer, has been hit hard in Europe, with sales droppin' by a staggering 49% in the first two months of '25 compared to last year. The European Automobile Manufacturers' Association (ACEA) released these disheartening figures on a Tuesday report.
Elon Musk, the American billionaire CEO and advisor to a certain president, can't seem to escape controversy. This might've played a role in Tesla's declining market share as consumers shy away from the brand due to the public image damage.
Plummeting Sales in Germany
Tesla's slump in sales isn't just a European problem. In Germany, the number of new Tesla registrations plummeted by a startling 76% in February 2025, according to the Federal Motor Transport Authority (KBA). Surprisingly, overall electric vehicle registrations increased during the same period.
Even Janu-ary wasn't a good month for Tesla, with a 59% decline in sales recorded compared to the previous year. Remember, Tesla operates a factory in Brandenburg, Germany.
Controversial Image Damage
The carmaker has been taking a hit lately with its CEO, Musk, getting wrapped up in squabbles concerning government policies. In countries like the US and Europe, it seems Teslas have been targeted, with instances of arson and vandalism at dealerships and charging stations.
Moreover, some German companies have decided to drop Tesla as a supplier for corporate vehicles due to Musk's close ties with far-right figures. Companies such as Rossmann and several energy providers have decided to distance themselves from Tesla. Some Tesla drivers have even used stickers to disassociate themselves from Musk, and there have been numerous cancelations by institutions, companies, and private individuals.
Things got so heated that the start of 2025 did not see Tesla maintain its usual market dominance. However, it's important to note that the overall electric vehicle market in Europe continues to grow, suggesting that Tesla's troubles might be isolated to the brand rather than the broader market conditions.
Scathing Insights
- Political Controversies and Image Damage: Tesla faced significant image damage due to Elon Musk's divisive political activities. Consumers appear wary of the brand due to Musk's actions, such as a Nazi salute and perceived political interference.[2][3][4]
- Model Y Transition: The switchover to a refreshed Model Y might have affected sales. As European buyers wait for the new model, they've delayed purchases, dampening the sales of the current model.[1][3]
- Intensified Competition: Europe has seen an explosion in electric vehicle offerings from traditional automakers, making it tougher for Tesla to vie for market share.[4][3]
- Market Incentives: Changes in incentives for electric vehicles have influenced consumer behavior in some regions, with incentives being reduced or removed, partially contributing to Tesla's struggles.[1]
- Market Trends: Despite the decline in Tesla sales, the overall electric vehicle market in Europe has continued to expand, signaling that Tesla's problems may be unique to the brand rather than the broader market conditions.[2][3]
- The Commission, in response to the turbulent sales of Tesla, has recently been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, as nuclear power is increasingly being considered as a solution to the energy needs of electric vehicles by some companies facing competition with Tesla.
- In recent months, a number of ACEA members have spoken out against Tesla's Q4 results, citing the company's controversial image and Elon Musk's associations with far-right figures as potential barriers to growth in the European market.
- Tesla's registrations in Europe have dramaticly dropped in the first half of the year, with Germany experiencing a 76% decline in February alone, and overall electric vehicle registrations remaining steady during the same period, allowing competitors such as ACEA members to gain market share.
