Tesla Sales Plummet in Europe Amid Political Tensions
A Tesla Supercharger (Flickr)
Tesla sales have declined by 45% in Europe in the month of January 2025 as compared to France and 75% in Spain, reports Yahoo. The U.K. has only seen a drop of 18%. However, even as Tesla recorded a decrease, the total EV sales in Europe rose by 37.3%.
Investors are concerned about Tesla sale trends; the stock price has fallen by 45% in 2025, per PBS. On March 10, 2025, Tesla shares dropped by 15%, marking its worst day in nearly five years, according to CNBC.
Although Europe is a flourishing market for EVs and is a champion of sustainability, Tesla sales have dropped mainly due to Elon Musk’s recent high-profile political activities, per NBC. Elon Musk is the largest shareholder and CEO of Tesla, Inc. Tesla dealerships in Europe have been the site of numerous protests in the last month, with protestors calling for a boycott of Tesla cars. Musk’s affiliation with right-wing movements, such as the rise of President Trump in the U.S. and the Alternative for Germany (AfD) in Germany, is discouraging Tesla sales, according to CBT News.
Tesla is particularly struggling in Germany. Tesla’s European production factory is in Germany. Musk’s straight-armed gesture, which many believe to be a Nazi salute, and support to the AfD, which many see as a far-right party, has stifled enthusiasm for Tesla EVs, according to DW. Tesla is also under additional fire in Germany for allegedly not paying sick employees in its factory. After an unusually large number of workers in the German Tesla factory called in sick, an email was sent to the employees threatening to cut off wages if medical diagnoses were not released, per Mint.
At the same time, competition between the U.S. and China, the two leading EV makers of the world, is taking center stage in Europe. With China looking to expand its influence on the continent, BYD is poised to grow in Europe. It recently claimed that it can offer more models than Tesla and has an increasing presence despite tariffs and rising tensions with both Brussels and Washington, according to Wards Auto.
However, there are silver linings for Tesla in Europe. Sales doubled in Ireland in February 2025, according to The Sunday Times. Sales also bounced back in the U.K., with a 21% increase from this period in 2024, per Fortune.
Several European leaders, such as Emmanuel Macron, Keir Starmer, and Jonas Gahr Støre (Norway’s Prime Minister), have criticized Elon Musk’s inflammatory posts on X, contributing to the rise of consumer backlash, per The Guardian.
Meanwhile, Musk had taken to X to reassure investors and the general public about Tesla, saying, “It will be fine long-term” in response to a post about Tesla’s largest single-day stock price drops. Yet, he also admitted that he was having “great difficulty” running other businesses along with the Department of Government Efficiency (DOGE), according to an interview he did with Fox Business.
Elon Musk’s role will be critical in deciding Tesla’s future, especially in Europe and China.