Tesla’s Sales Slump in Europe as Backlash Against Musk Grows

Tesla is struggling in Europe, with sales plummeting across several key markets. February’s numbers paint a bleak picture, showing a sharp decline in demand amid growing controversy surrounding Elon Musk. His political statements and online presence have put the company under increasing scrutiny, raising questions about how much consumer sentiment is shifting away from the brand.

The most dramatic drop has been in Germany, where Tesla sales fell a staggering 76 percent compared to last year. France reported a 26 percent decline, while Norway—once a stronghold for the company—saw its market share shrink from 20 percent in 2023 to just 8.8 percent. Denmark and Sweden followed the trend, with sales falling 48 percent and 42 percent, respectively. The UK was the only bright spot, with sales rising 20 percent, though even there, Tesla’s market share dipped slightly. The numbers suggest a clear pattern: in countries where Musk’s politics have sparked the most controversy, Tesla is losing ground fast.

A recent report also highlights a significant drop in Tesla sales in Australia, adding to the company’s growing struggles in key global markets.

Musk’s endorsements of far-right parties in Europe and his continued alignment with Donald Trump have fueled calls for boycotts. Activists across the continent are urging consumers to distance themselves from Tesla and X, the social media platform formerly known as Twitter. In London, campaigners are encouraging people to ditch their Teslas and delete their X accounts. In Strasbourg, stickers reading “Stay Away from the EU” have been popping up, targeting Musk directly. In France, Tesla vehicles have even been set on fire, with authorities treating the incidents as acts of vandalism.

At the same time, Tesla’s struggles in Europe are creating opportunities for competitors. Chinese automaker BYD, which has struggled to gain entry into the U.S. market due to political tensions and regulatory barriers, is aggressively expanding in Europe. As Tesla’s reputation takes a hit, BYD and other automakers are looking to fill the gap, offering more affordable EV options that could win over disillusioned Tesla buyers.

Beyond the political backlash, Tesla is facing financial uncertainty. The company’s stock has dropped more than 40 percent since December, wiping out much of the gains it made following Trump’s election win. Some analysts believe consumers may be holding off on purchases until the refreshed Model Y launches in Europe this month. But industry experts suggest a deeper issue at play—Tesla’s brand image in Europe is taking a serious hit, and it’s unclear if it can bounce back anytime soon.

The situation raises a broader question: how far can a CEO’s political views damage a company and a once-beloved product? Tesla’s decline in Europe shows that a company’s reputation is often tied to its leadership, and Musk’s increasingly polarizing persona is turning off some consumers who once admired his innovation. If Tesla continues to struggle, it could serve as a warning for other brands about the risks of political entanglement at the executive level.

It also remains to be seen whether the same backlash could extend to Musk’s other ventures. Starlink, his satellite internet service, has been rapidly expanding worldwide, but as consumer sentiment shifts, could it also become a target? If the controversy around Musk continues to grow, Tesla may not be the only brand under fire. The coming months will be crucial in determining whether Tesla can rebuild trust in Europe or if competitors like BYD will capitalize on its decline and take a bigger share of the EV market.