Tesla experienced a sharp decline in sales across Germany and other parts of Europe in February, a downturn that has affected its stock price and drawn attention to the political controversies surrounding CEO Elon Musk.
In Germany, Europe’s largest electric vehicle market, Tesla sales fell by 76 percent compared to the same month last year, according to data released Wednesday by the German Association of the Automotive Industry. This marks the second consecutive month of declining sales for the company in the country.
Demand for Tesla vehicles has also weakened in other European nations, coinciding with Musk’s increased political involvement. Since aligning himself with US President Donald Trump and using X, the social media platform he owns, to promote far-right parties, public sentiment toward Tesla has shifted.
Tesla’s stock price has dropped by more than 40 percent since its peak in December, erasing the gains it made after Trump’s election victory in November, when investors speculated that Musk’s influence in the White House could benefit his businesses.
In Germany, Musk’s outspoken support for a far-right party in the lead-up to last month’s parliamentary elections, along with his call for the country to move beyond “a focus on past guilt,” may have further alienated potential customers.
Both Musk and Tesla have faced growing backlash from activists and protesters. In London, campaigners have urged Tesla owners to abandon their vehicles and close their X accounts.
In Strasbourg, France, a group has been distributing stickers warning Musk to “Stay Away from the E.U.” Over the weekend, a fire broke out in a parking lot in southern France, destroying multiple Tesla vehicles. Prosecutors stated that the incident was “not at all accidental.”
The decline in demand is reflected in sales figures across Europe. According to the PFA automobile organization, Tesla’s sales in France dropped by more than 26 percent in February compared to last year.
In Norway, where the country is nearing its goal of phasing out combustion engine cars, Tesla sales fell by nearly half last month, despite an overall increase in new car registrations. “The brand has had a unique market position in Norway for several years,” said Oyvind Solberg Thorsen, director of the Norwegian Road Traffic Information Council. “Whether this will continue remains to be seen, as there is a lot of turmoil and noise surrounding Tesla and Elon Musk.”
Elsewhere in Scandinavia, Tesla sales fell by 48 percent in Denmark and 42 percent in Sweden, even as the overall auto markets in both countries saw growth.
On the contrary, in Britain, Tesla bucked the trend, with a 20 percent increase in February sales compared to last year, according to the Society of Motor Manufacturers and Traders. Despite the growth, Tesla’s market share still declined by three percentage points, falling to 10.8 percent.
Some analysts suggest that part of the sales drop may be due to customers waiting for the updated version of the Model Y, which is set to arrive in Europe later this month. However, they note that this factor alone is unlikely to explain the steep decline.
Tesla’s challenges extend beyond Europe. In China, the company’s vehicle production fell by nearly 50 percent in February. While Musk’s political activities are not a major factor in China, Tesla faces strong competition from domestic automakers such as BYD and Xiaomi.
Musk has largely avoided commenting on declining car sales, instead emphasizing Tesla’s future in self-driving technology. He has promoted a planned “Cybercab” that would be capable of autonomous driving, telling investors last month that the company aims to launch an autonomous ride-hailing service in Austin, Texas, in June.
Yet Tesla faces stiff competition in the self-driving space as well. Waymo, a subsidiary of the same parent company as Google, already operates driverless taxi services in multiple US cities, including Austin, Los Angeles, Phoenix, and San Francisco, and is expanding to Atlanta and Miami.
Some Tesla investors are pushing for greater accountability from Musk, urging him to shift his focus back to the company. Tulipshare, a shareholder advocacy group, plans to introduce a proposal at Tesla’s next annual meeting that would link Musk’s compensation to performance on environmental, social, and corporate governance goals.
“It is time for Tesla’s investors to hold the company’s leadership accountable,” said Tulipshare CEO Antoine Argouges.
(New York Times)
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