Tesla’s sales in Europe dropped by more than 45% in January, signaling a decline in demand following CEO Elon Musk’s increasing involvement in regional politics, reports the Financial Times.
According to the latest data from the European Automobile Manufacturers’ Association, Tesla sold 9,900 vehicles across Europe last month, down 45% from the same period in 2024. The company’s market share dropped to 1% from 1.8%, despite overall electric vehicle (EV) sales rising 37% to 166,000 units. Meanwhile, gasoline and diesel vehicle sales declined sharply, falling 20.5% and 26.5%, respectively.
Musk’s endorsement of Germany’s far-right Alternative for Germany (AfD) party and his criticism of the EU as “undemocratic” have led to backlash across Europe. However, analysts suggest another reason for Tesla’s decline could be that consumers are holding off for the refreshed Model Y, expected later in 2025, with the company’s website indicating March.
In contrast, SAIC Motor, the Chinese state-backed automaker, saw a 37% sales jump to 23,000 vehicles, capitalizing on growing demand for affordable EVs. Meanwhile, total new vehicle registrations in Europe fell 2.1% to just under one million vehicles in January.
Shares of Tesla are trading at $300.33 today, down 9%. For the week, shares are down 16.27% and for the past month, down 25%.
