Tesla Faces Global Sales Decline as Competition and Controversy Mount

Tesla's sales in key markets, including Europe and California, have dropped significantly, with CEO Elon Musk's political involvement and aging product lineup cited as contributing factors.

Tesla's sales fell sharply in Europe, with January 2025 registrations down 63% in France, 44% in Sweden, and 38% in Norway, as competition intensifies and public sentiment toward Elon Musk declines.
In California, Tesla's largest U.S. market, vehicle registrations dropped 12% in 2024, marking the company's first annual decline in the state and its fifth consecutive quarterly registration decrease.
Rising competition from automakers like BYD, Hyundai, and Ford, as well as the introduction of newer EV models, has eroded Tesla's market share globally, including a 7.6-point drop in California's zero-emission vehicle market share in 2024.
Elon Musk's political activities, including his support for Donald Trump and controversial statements in Europe, have reportedly alienated some consumers and contributed to Tesla's brand value decline.
Tesla's aging product lineup, with no major new models since the Model Y, has struggled to compete with fresher offerings from rivals, though the refreshed Model Y is expected to launch in March 2025.