Demand for Tesla vehicles in Europe has significantly dropped recently. Musk's recent political actions and behavior have negatively impacted the brand's sales. Musk’s open support for Donald Trump's policies and backing of far-right politicians in Europe have sparked a widespread boycott against Tesla.
Germany’s transport authority reported that new Tesla registrations in January 2025 fell by as much as 60% compared to the same period last year. Sales in Spain, France, Sweden, and the Netherlands have also significantly declined.
Musk’s recent behavior has further politicized Tesla’s image. For example, Musk endorsed Germany's AfD party and even conducted an interview with the party’s leader, which has caused backlash among Tesla’s European customers.
Many Tesla owners have been reported to distance themselves from the brand due to Musk's actions. A survey in the Netherlands found that one in three Tesla owners want to sell their cars because of Musk’s ideology. This situation has created opportunities for other electric vehicle manufacturers. Rival brands like Polestar are trying to capitalize on Tesla customers’ dissatisfaction and increase their sales by offering special deals.
Some analysts believe that 30% of Tesla’s sales decline is due to Musk’s actions, while the remaining 70% is attributed to industry factors. Tesla is facing fierce competition and other challenges as well.
Although it’s a tough period for Tesla, the company’s reputation largely depends on the behavior of its CEO.
