Tesla Sees Drop In Sales Due To Elon Musk And His Political Ties
- 5 days ago
- 3 min read
The famous and globally known car manufacturer faces a sharp decline in sales in Europe potentially due to Elon's politics. What does this mean for Tesla, Elon and the EV market in Europe?
Elon Musk has been under fire from key investors and shareholders of Tesla as the company sees a 45% decrease in sales within Europe. Many speculate that this is due to Elon's 'morally questionable' foray into politics with him cozying up to the current U.S. President Donald Trump. Whilst this is occurring, international buyers have shifted focus to different EV manufacturers such as Chinese firm BYD who have recently overtaken Tesla in sales. The traditional car titans such as BMW, Volkswagen and Renault have also seen increased interest as European customers seem to stray away from the American EV maker.
Social media has had a sizeable impact on this decrease of sales with multiple accounts condemning the politics of Elon Musk and his association with the U.S. president. The TikTok account Overthrow Musk engages in a form of gorilla protesting by creating billboards and cardboard cutouts to discourage people buying Teslas (and other Elon associated products such as 'X').
Other accounts such as People Vs Elon have also grown in popularity with over 61,500 followers which could show a growing trend against Elon and his products. This may have created a potential for a new 'social stigma' around owning a Tesla with many owners of the EVs covering their £40,000+ cars with bumper stickers telling how they bought their car before the Elon - Trump friendship. This social shame around owning a Tesla may have caused the 70% increase in the number of second hand Teslas on the market compared to last year as owners try and offload their vehicles.
A recent survey by online news portal T-Online showed that 94% of 100,000 Germans surveyed would not buy a Tesla, which spells bad news for the car manufacturer who only recently opened a 740 acre 'giga-factory' in the country. The Norwegian market, which has long been a secure market for Tesla due to it's strong EV incentives for buyers, saw Tesla market share drop from 21.7% in January 2024 to 7.4% a year later with legacy competitors such as Toyota covering the gap.
It is clearer then ever that consumers, especially wealthy consumers who have the means to buy a Tesla, are voting with their wallets and moving away from what was once seen as the magnum opus of electric cars. Europeans have traditionally been more left leaning meaning Elon's relationship with the controversial Trump administration has clearly left a sour taste in the mouth of many.
With Tesla's popularity decreasing, many buyers are looking towards other brands such as the established BMW, Volkswagen and Toyota as well as newcomers from China such as BYD and Omoda who are quickly expanding their UK and European sales. This may give these newer competitors an opportunity to grow their market share in the lucrative EU market where EV sales are constantly increasing due to pressures to reduce carbon emissions union wide.
Overall, it is clear to see that Tesla sales are decreasing rapidly due to Elon's recent political stances, however it is not clear yet where the floor of this decrease is and how much longer Tesla stockholders will hold out before demanding a change in leadership and a distancing of Elon from the brand. In the next year we may see either a significant reduction in Tesla's market share, popularity and sales or a situation where Musk is pushed away from Tesla in an attempt to save the brand. We'll have to wait and see what happens with Tesla.
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