Tesla Faces Sharp Sales Decline in Europe Amid Backlash Against Elon Musk

Tesla's European sales have plummeted by over 45% in early 2025, driven by consumer discontent with Elon Musk's political actions and intensified competition from rival EV makers.

Tesla's sales in key European markets, including Germany, France, Norway, and Sweden, have dropped significantly, with declines ranging from 42% to 60% year-over-year in early 2025.
Consumer backlash against Elon Musk's political involvement, including his support for far-right parties and controversial statements, has fueled protests, vandalism, and declining brand loyalty.
Tesla's aging vehicle lineup and increased competition from European and Chinese EV manufacturers have further contributed to the company's declining market share in the region.
The delayed release of an updated Model Y, Tesla's best-selling vehicle, has caused many potential buyers to postpone purchases, adding to the company's struggles in Europe.
The sales slump threatens Tesla's lucrative emissions credit revenue in Europe, as fewer car sales may impact its ability to meet promised credit commitments to automakers.