{"id":40501,"title":"Tesla sees European sales slump amid Elon Musk political backlash and rising competition","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2025-03-25T08:05:58+00:00","modified":"2025-03-25T08:05:58+00:00","canonical_url":"https://stockmark.it/tesla-sees-european-sales-slump-amid-elon-musk-political-backlash-and-rising-competition/","markdown_url":"https://stockmark.it/tesla-sees-european-sales-slump-amid-elon-musk-political-backlash-and-rising-competition.md","json_url":"https://stockmark.it/tesla-sees-european-sales-slump-amid-elon-musk-political-backlash-and-rising-competition.json","category":"Automotive","categories":["Automotive","Electric Vehicles"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2022/11/sa-tesla-sm.jpg?fit=480%2C270&quality=89&ssl=1","format":"news","language":"en-GB","content":"Tesla, the renowned electric vehicle (EV) manufacturer, is experiencing a significant decline in sales across Europe, marking one of its biggest setbacks in recent years. The company’s sales dropped nearly 45% last month, as the firm struggles with increasing competition and the fallout from Elon Musk’s controversial political alliances.\n\nThe latest data collated by Jato Dynamics reveals that Tesla registered fewer than 16,000 sales in February across 25 European countries, including the UK, Norway, and Switzerland. This stark plunge drove the company’s market share down to 9.6%, its weakest February in five years. January painted a similarly bleak picture, with Tesla’s European sales diving 45% compared to the same period in 2024, with only 9,945 vehicles sold.\n\nWhile the European sales drop has raised concerns among analysts, it appears the UK is bucking the trend. The Society of Motor Manufacturers and Traders reported a 21% rise in Tesla registrations in February, with the Tesla Model 3 and Model Y securing the second and third spots on the list of best-selling cars, following the Mini Cooper. This growth, however, remains an outlier amid the broader European downturn.\n\nAs criticism intensifies surrounding Elon Musk’s political ties, particularly his role in the Donald Trump administration, Tesla dealerships across Europe have become a focal point for protests. Musk’s public endorsement of Germany’s far-right AfD party and controversial remarks at conservative conferences have fuelled growing backlash from some Tesla owners and prospective buyers. Analysts suggest these political controversies may be undermining the brand’s appeal among eco-conscious consumers, who form a significant portion of its customer base.\n\nCompounding the issue is Tesla’s decision to phase out the existing version of its bestselling Model Y, ahead of an updated version’s release. Felipe Muñoz, a global automotive analyst at Jato Dynamics, emphasised that brands with limited line-ups, such as Tesla, face added vulnerability during model changeovers. These production gaps, coupled with a volatile political landscape, have exacerbated the company’s regional sales struggles.\n\nMeanwhile, Tesla’s rivals have seized the opportunity to capitalise on the brand’s challenges. Volkswagen reported a remarkable 180% increase in European EV sales last month, delivering nearly 20,000 vehicles. BMW and Mini achieved a combined 19,000 EV sales, while Chinese manufacturer BYD recorded a robust 94% rise, exceeding 4,000 sales in Europe. BYD has also overtaken Tesla as the world’s largest EV company in terms of revenue, generating $100 billion in 2024 compared to Tesla’s $97.7 billion.\n\nWhile global demand for EVs continues to grow, the heightened competition and market dynamics emphasise the challenges awaiting Tesla as its leadership navigates both political scrutiny and evolving consumer priorities."}