Tesla’s European Sales Crash 45%, Loses $89 Billion in Market Value
- Tesla’s European sales dropped 45% in January, selling only 9,945 units, with Germany and France seeing declines of 60% and 63%, respectively.
- Musk’s political affiliations, including support for far-right European leaders and his role in Trump’s administration, are alienating European consumers.
- Tesla’s stock fell 8.4%, wiping out $89 billion in market value, as investors worry about declining sales and increasing competition.
Tesla's European sales have experienced a significant downturn, with January figures revealing a 45% decline compared to the same month last year. The company sold 9,945 vehicles in Europe, a sharp drop from the 18,161 units sold in January 2024, reducing its market share from 1.8% to 1%
While slowing demand and supply chain challenges play a role, Tesla’s political baggage is emerging as a critical factor.
“Tesla is clearly facing challenges in Europe, and the Musk brand issues are adding to the headwinds,” said Wedbush analyst Dan Ives, estimating that 10-15% of the sales decline is linked to Musk’s politics.
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CEO Elon Musk’s open support for far-right leaders, including Germany’s Alternative for Germany (AfD) party, has alienated European consumers. His advisory role in Donald Trump’s administration has further fueled backlash, with Tesla owners in Germany and France actively distancing themselves from the brand.
The impact is evident across key markets. The fallout extended to Wall Street, where Tesla’s stock plunged 8.4% to $302.80, wiping $89 billion from its market value. German Tesla sales crashed 60%—the worst performance since mid-2021—while French sales dropped 63%. In the UK, Tesla was outsold by BYD for the first time.
Edited by Harshajit Sarmah
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