Musk effect? Tesla sales slump in five European markets in January

TESLA posted lower sales across five European countries in January, including the United Kingdom and France, as competitors with newer models gained on the electric vehicle maker and polls show public opinion souring on CEO Elon Musk.

Musk has made a high-profile foray into politics, with much of his 2024 dominated by his financial support of Donald Trump, on whom the billionaire CEO spent $250 million in what proved a successful campaign to return to the White House. He has also stirred controversy with his vocal support for far-right parties in Britain and Germany on his social media platform X.

Tesla’s UK sales fell nearly 12 per cent in January, even as monthly EV registrations in Europe’s biggest battery-electric market surged to a record, according to data published by New AutoMotive on Tuesday.

That follows a 63 per cent decline in January sales for Tesla in France, drops of 44 per cent and 38 per cent in Sweden and Norway, and a 42 per cent fall in the Netherlands. In California, the largest U.S. car market with more than 1.7 million vehicle registrations in 2024, Tesla sales fell by 12 per cent.

In 2024, Tesla posted its first-ever annual decline in deliveries, though it is still the leading EV seller in the United States. Musk said he would soon launch long-awaited cheaper EVs in 2025, and the company has increased its focus on autonomous driving technologies.

Tesla did not immediately respond to a request for comment on its sales. The company fell from the No 2 spot for EV sales in Britain in January 2024 to the No 7 spot behind Volkswagen, Mercedes and Stellantis’ Peugeot, which all posted higher sales. Several polls show consumers have mixed views of Musk. A late January survey conducted by EV review website Electrifying.com showed that 59 per cent of British owners of EVs, and those intending to buy such a vehicle, said Musk’s influence would deter them from buying a Tesla.

“Musk’s influence on the brand is becoming increasingly polarising, pushing many buyers to look elsewhere,” said Electrifying.com CEO Ginny Buckley. “With over 130 mainstream EV models now available in the UK -- compared to just 25 in 2020 -- competition has never been fiercer and Tesla is already feeling the pressure.”

European politicians have pushed back lately against Musk’s recent comments, which include the amplification of far-right commentators on X. Some accounts have quit the platform, citing the spread of misinformation. Musk has dismissed criticism against him as an affront to democracy and free speech.

The Tesla CEO has become a vocal supporter of the far-right Alternative for Germany (AfD) ahead of February elections. He recently told an AfD audience just before the 80th anniversary of the liberation of the Auschwitz concentration camp that Germans should not feel guilt for the sins of their great-grandparents.

The share of Swedes with a positive view of Tesla fell to 11 per cent in a Novus survey conducted after Trump’s inauguration, down from 19 per cent in a similar poll conducted January 15-17, according to Swedish news agency TT. Those with a negative view jumped to 63 per cent from 47 per cent, TT reported.

The chief executive of research group New AutoMotive, Ben Nelmes, told Reuters that Tesla’s problems stem less from Musk’s actions and more from its failure to launch a new mainstream model since the Model Y in 2020, while rivals, including Chinese EV makers, have fresher products on the market.