Tesla’s EU sales dropped by half because of Elon Musk's antics in Germany’s elections

Tesla’s sales in Europe took a major hit last month, with figures almost halving compared to the same time last year. The drop comes amid growing concerns that Elon Musk’s increasing involvement in political affairs — particularly his support for Germany’s far-right party — may be driving customers away, as per a report by The Guardian.  

Data from the European Automobile Manufacturers’ Association (ACEA) revealed that Tesla sold just 9,945 cars in January, a sharp 45 per cent decline from the 18,161 sold in the same month last year. This slump has seen the company’s market share shrink from 1.8 per cent to just 1 per cent, raising questions about whether Musk’s controversial statements and political ties are playing a role in declining demand.

Political controversy and consumer backlash

Musk, who has become an outspoken supporter of far-right politics in both Europe and the US, has been making headlines for all the wrong reasons. His public backing of Germany’s Alternative for Germany (AfD) party, which he called the country’s “best hope for the future,” has stirred significant controversy. He even personally called AfD co-leader Alice Weidel to congratulate her after the party saw its support double in Germany’s national election.

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Beyond Germany, Musk has also inserted himself into UK politics, accusing Labour leader Keir Starmer and other politicians of covering up grooming gang scandals — despite no concrete evidence of such a cover-up. His aggressive social media presence has drawn sharp responses from European leaders, including French President Emmanuel Macron and officials from Norway, Britain, and Germany, who have pushed back against Musk’s political commentary.

Tesla struggles in key European markets

While Tesla’s sales took a nosedive, the broader electric vehicle (EV) market in Europe is thriving. Battery-electric car sales in the region surged by 34 per cent in January, capturing a 15 per cent market share. Several major markets, including Germany (53.5 per cent), Belgium (37.2 per cent), and the Netherlands (28.2 per cent), recorded strong growth. Even as the overall European car market shrank by 2.1 per cent, the EV segment continued to expand.

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Tesla, however, saw significant declines in several key countries. In Germany, Tesla registered only 1,277 new vehicles—the lowest monthly total since July 2021. France saw an even steeper drop, with sales plummeting 63 per cent to the lowest level since August 2022.

Perhaps most notably, Tesla was outpaced by Chinese EV giant BYD in the UK for the first time. Tesla’s sales in Britain fell nearly 8 per cent in a market where electric vehicle sales as a whole jumped by 42 per cent.

What’s next for Tesla in Europe?

The dramatic decline in Tesla’s sales raises concerns about whether Musk’s public persona is harming the brand’s appeal in Europe. While Tesla remains a major player in the global EV market, its recent struggles come at a time when competition is intensifying, particularly from Chinese manufacturers like BYD.

As European consumers increasingly embrace electric vehicles, Tesla’s ability to recover may depend on whether Musk can separate his personal political views from the company’s brand image. With other automakers expanding their EV offerings and political tensions running high, Tesla may need more than just new models and price cuts to regain its momentum in the region.