Tesla sales plummet in Europe as controversy surrounds Elon Musk’s political associations, sparking a consumer backlash and decline in demand for the US carmaker’s vehicles.
Tesla Sales Plummet in Europe Amid Criticism of Elon Musk’s Politics
Declining Demand and Market Share
Sales of new Tesla cars have almost halved in Europe last month, indicating a waning demand for the US carmaker’s vehicles. The Texas-based company sold 9,945 vehicles in January, down 45% from last year’s ‘18,161’ , according to data from the European Automobile Manufacturers’ Association (ACEA). This decline suggests that Elon Musk‘s interventions in European political affairs and his senior role in Donald Trump‘s administration may be leading to a consumer backlash.
Musk’s Politics Under Fire
Elon Musk has been a vocal supporter of Germany’s far-right AfD party, describing it as the ‘best hope for the future’ in January. He also congratulated the party’s co-leader Alice Weidel on their performance in Germany’s national election after they doubled their support from the previous election. Furthermore, Musk waded into the UK’s political row about grooming gangs, publicly accusing Keir Starmer and other senior politicians of covering up the scandal despite there being no evidence of any organized cover-up.
Elon Musk has been increasingly involved in politics, often using his social media platforms to express his views on various issues.
He has endorsed several politicians, including Democrats and Republicans, and has even run for public office himself.
In 2022, he tweeted about running for president, but later stated that he was joking.
Despite this, Musk's tweets have significant influence, with some analysts suggesting they can impact the stock market.
His political views often focus on issues like free speech, climate change, and space exploration.
European Market Trends
The slump in Tesla sales came as the European market for new battery-electric cars grew by 34% to ‘124,341’ units, capturing a 15% share of the total car market. The company’s sales fell by nearly 8% in an EV market that grew by 42% last month. In Germany, Tesla sold only 1,277 new cars last month, its lowest monthly total since July 2021. Sales in France plummeted 63%, its worst performance in the country since August 2022.
Market Share and Competition
Tesla‘s share of the market dropped to 1% from 1.8%. The company also registered fewer vehicles in the UK than its Chinese electric car rival BYD for the first time. This shift in market dynamics may be attributed to Musk‘s increasing involvement in European politics, which has sparked criticism from various leaders, including Emmanuel Macron, the French president.
As of 2022, Tesla holds approximately 25% of the global electric vehicle (EV) market share.
Founded in 2003 by Elon Musk, 'Tesla has revolutionized the automotive industry with its innovative approach to sustainable energy and transportation.'
The company's Model S, Model X, Model 3, and Model Y have been major contributors to its success, appealing to environmentally conscious consumers and tech-savvy buyers alike.
With a strong focus on software updates and over-the-air technology, Tesla continues to dominate the EV market, with plans for further expansion and growth in the coming years.
Overall Market Trends
The overall car market shrank by 2.1% in January. Many of the EU’s big markets recorded declines, with France down by 6.2%, Italy 5.8% lower and Germany losing 2.8%. However, Spain recorded a 5.3% increase. The decline in Tesla sales may indicate a growing concern among consumers about Musk‘s politics and its potential impact on the company’s values and direction.
