 "Elon Musk gestures at the podium inside the Capital One arena on the inauguration day of Donald Trump's second presidential term, in Washington. Many likened his hand gesture to a Nazi salute. (Photo: Reuters)")
Even though the electric vehicles’ (EVs) sales rose across the world in March, the sales of Elon Musk’s Tesla fell across Europe, China, and the United States.
Tesla’s decline in March is the continuation of the trend that began in the weeks after Donald Trump’s victory in the 2024 election. Musk’s political rise has coincided with the decline of his business. The backlash to his politics has led to rejection of his cars.
Between December and March, Tesla’s value fell by 50.5 per cent in the longest continuous loss-making streak.
In March, as global EV sales rose worldwide, Tesla’s sales dropped in France, Sweden, Norway, Denmark, and the Netherlands, for a third consecutive month. Tesla’s sales in China also plunged, which is the world’s largest market for EVs and Tesla’s second-largest market.
In Europe, Musk’s promotion of far-right politics and regime change operations have upset moderates who are ditching Tesla in protest. There have also been protests and vandalism of Tesla facilities as backlash has spread in response to Musk’s extremist politics.
People embrace EVs, reject Tesla worldwide
In March, the sales of EVs and electric hybrids rose worldwide by 29 per cent, according to Reuters.
EVs’ sales grew 36 per cent in China, 24 per cent in Europe, 12 per cent in the United States and Canada, and 13 per cent in the rest of the world.
Musk’s Tesla, however, registered a decline in nearly all markets as backlash to his extremist politics continues to spread. In France and Sweden, Tesla sales fell for the third month straight.
Impact Shorts
More ShortsTesla’s sales fell by 36.83 per cent in France, 63.9 per cent in Sweden, 65.6 per cent in Denmark, 61 per cent in the Netherlands, and 1 per cent in Sweden, as per Reuters.
In France, Tesla’s market share fell to 1.63 per cent from 2.55 per cent a year ago.
In France, Tesla’s quarterly sales fell by 41.1 per cent. The company’s quarterly sales were down by 55.3 per cent in Sweden, 12.5 per cent in Norway, 55.3 per cent in Denmark, and 49.7 per cent in the Netherlands.
In China, Tesla’s sales fell by 11.5 per cent in March year-on-year, according to CNBC.
Musk’s politics a liability for Tesla
Musk has emerged as the most powerful politician in the United States after Trump and has pursued far-right politics at home and abroad.
In the United States, Musk has continued to pour money to get far-right figures elected at various levels. He has also presided over the dismantling over the US government in the name of cutting purported wasteful expenditures. An estimate has suggested that his Department of Government Efficiency (Doge) may end up leaving 1 million people as government departments, programmes, and contracts are gutted.
In Europe, Musk has been running a regime change juggernaut where he has backed far-right parties and has vowed to topple moderate elected leaders. In the United Kingdom, he has put his weight behind Reform UK and has vowed to topple Prime Minister Sir Keir Starmer. In Germany, he has backed far-right, neo-Nazi party AfD. In Canada, he had vowed to overthrow former Prime Minister Justin Trudeau. In Spain, he has supported far-right party Vox.
Analysts have said that Musk’s politics has become a liability for Tesla. While he has pursued a far-right agenda, most of the EV costumers have historically been moderates and leftists.
Stephen Gengaro, an analyst at investment bank Stifel, previously told Yahoo Finance that Musk’s extreme politics are plunging Tesla’s favourability.
“We have seen the net favorability rating of Tesla fade to close to its lowest level in the existence of the data. I think it is causing a big, big problem with the near-term sales and just sort of the impact it has on people’s willingness to buy a Tesla,” said Gengaro.
Jacob Falkencrone, the global head of investment strategy at Saxo, said that Musk’s biggest challenge is perception.
“Tesla’s biggest challenge in 2025 isn’t technology — it’s perception. Elon Musk’s political baggage is now weighing on sales, brand loyalty and investor confidence,” Falkencrone previously told Bloomberg.