Tesla’s sales have dropped significantly in multiple regions, coinciding with CEO Elon Musk’s increasing political involvement. In January 2025, Tesla’s European sales fell by 45%, following the company’s first annual global delivery decline in over a decade.
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Regional Sales Impact
- California: Tesla sales declined 12% in 2024.
- Germany: Registrations dropped 41% in 2024 and 59% in January 2025.
- Sweden: Model Y and Model 3 registrations declined 48% and 31%, respectively, in January.
- United Kingdom: The country is now Europe’s largest EV market, but Musk has aligned with politicians opposing net-zero targets.
Public and Political Reactions
- Activists in Germany projected footage of Musk’s recent gesture onto the Tesla Berlin factory, generating millions of views online.
- Tesla showrooms in the Netherlands, Colorado, Oregon, and Washington were vandalized.
- Protests were staged at Tesla stores across the U.S.
- Public opinion polls indicate Musk’s approval ratings have declined in Britain, Germany, and Sweden.
- In the U.S., Pew Research and Quinnipiac University report that a majority of Americans view Musk unfavorably, with concerns over his influence on national policy.
Tesla’s Business Outlook
Tesla executives have stated that vehicle sales are expected to return to growth in 2024, though specific projections were not provided. The company previously indicated a potential 20-30% sales increase.
Factors influencing Tesla’s production and sales in 2024 include:
- Redesign of the Model Y, leading to temporary production slowdowns at four factories.
- Plans for more affordable Tesla models, expected to begin production in the first half of 2024.
- Tesla’s stock has declined 37% from its December peak, though it remains up 20% since the November 5th U.S. election.
Despite these strategic adjustments, Tesla continues to face challenges related to brand perception and consumer sentiment.
