Tesla is facing a dramatic decline in sales across Europe as electric car makers face backlash over Elon Musk's active role in the Trump administration.
Musk, whose government's efficiency was quick to give back parts of the US government, has, on the other hand, angered the left-leaning, centralist political sects of Europe, embracing far-right figures.
In Europe, Tesla has traditionally suffered severe losses in strong regions.
France's sales plummeted 63% in January compared to the same month last year.
In Germany, the decline was almost as sharp as sales fell 59.5%.
Analysts point to growing resistance against the mask, particularly after recognizing the German party's support for far-right alternatives.
This shows Tesla's weakest January sales performance in Germany since 2021.
The company's struggle is not limited to mainland Europe.
Tesla sales have also been skipped in the UK, but a similar pattern can be seen in the Scandinavian market, where electric vehicles are widely adopted.
Musk is stirring political debate in the UK by defending the release of far-right activist Tommy Robinson from prison.
Robinson is sentenced to prison for breaching an injunction, but he has a history of legal issues, including attacks and previous sentences for court light empt.
Musk repeatedly posts in his defense, questioning why Robinson is trapped in solitary cells, suggesting that he was jailed to “tell the truth” about the British grooming gangster.
The Tesla chief was also very critical of British Prime Minister Kiel Starmer.
French Prime Minister François Bailloux criticized Musk last month, warning that billionaires pose a threat to democracy.
in TV interviewBayrou argued that wealth should not give individuals the power to influence public opinion and decision-making.
In Sweden, new Tesla registrations have fallen 44% from last year, while Norway recorded a 38% decline over the same period.
Swedish Tesla workers have launched a strike that began more than a year ago.
It is the longest work halt in the Scandinavian country in a century.
Perhaps more for Tesla is the recession in China, one of the most important markets. Sales in January fell 11.5% compared to the previous year, but local competitor BYD reported a surge in sales by nearly 50%.
Tesla stock is under pressure. As of Tuesday morning, the stock was trading at around $350. This has dropped significantly from the December peak, which is about $480.
Tesla stocks fell 13% last month, but in the past 12 months, stocks have grown more than 86%.
After the 2024 election, Musk found himself on the winning side of the political landscape. This is a change that initially coincided with a sharp rise in Tesla stocks.
His net worth surged at an estimated $170 billion as investors optimism increased the stock price.
However, the tide appears to be turning.
Tesla reported that vehicle delivery first declined annually last year, indicating a major change for companies that have long been the dominant force in the EV market.
The recession continues until 2025, with some major markets showing signs of distress.
In a recent research note, Mike O'Rourke, chief market strategist at Jonestrading, suggested that Musk's political integrity could play a role in Tesla's set-off.
“There's arguing that Tesla is beginning to be punished for Musk's close relationship with Trump,” he wrote. Reported by Bloomberg.
In addition to the confusion, Tesla dealers have recently been targeted for vandalism.
Colorado dealers were tainted with graffiti and windows were crushed last week. It's the third attack in just two weeks.
Authorities are investigating whether Musk's political partnership has encouraged these cases.
Tesla executives also acknowledge potential risks associated with changes in trade policy.
Vaibhav Taneja, the company's chief financial officer, recently warned during a call to revenue that tariffs imposed on manufacturing components could disrupt the company's operations.
“For many years, we have been trying to localize our supply chains across all markets, but we still rely on parts from around the world,” Taneja stressed that the new restrictions will affect Tesla's revenues. He said.
The company has not introduced new models since launching CyberTruck in late 2023. There has been debate over the launch of a more affordable Tesla model in 2025, but no specific timeline has been announced.
This post is being asked for comment from Mask.
