For January, Tesla’s sales in Europe significantly decreased, indicating a potential decline in interest for the U.S. automaker’s vehicles following its CEO, Elon Musk’s, increased involvement in European politics. The company sold only 9,900 units in the region, marking a drop of over 45% compared to the same period in 2024, as reported by the European Automobile Manufacturers’ Association. During this time, Tesla’s share of new car registrations also declined from 1.8% to 1%.
This reduction in market share coincides with Musk’s unprecedented engagement in EU politics, which included public support for the far-right Alternative for Germany (AfD) party ahead of the German elections, prompting backlash in Europe. Musk has also criticized the EU, describing it as “undemocratic” in November.
Alice Weidel, co-leader of the AfD, mentioned on Monday that Musk congratulated her following the party’s success in doubling its vote to approximately 21%, their highest ever.
Automotive experts suggest that the downturn in Tesla’s sales might also be influenced by consumers delaying purchases until the release of the updated Y model, anticipated in the first half of 2025.
Car analyst Matthias Schmidt noted that Tesla’s January sales were up against difficult comparisons from the previous year, which had been bolstered by the launch of an improved Model 3. He commented that despite these factors, the January figures were notably disappointing and may hint at a shift from Tesla to other brands.
Despite the decline, European consumers purchased 166,000 battery electric vehicles that month, a 37% increase from the previous year. Pure electric vehicle sales outpaced all other vehicle types, while sales of petrol and diesel cars dropped by 20.5% and 26.5%, respectively. These statistics encompass the EU, UK, and additional markets including Norway, one of Europe’s major EV markets.
In contrast, SAIC Motor, the Chinese state-backed automaker, witnessed a 37% rise in European sales to 23,000 vehicles in January, achieving one of the largest year-on-year increases among major manufacturers in the region.
Overall, new vehicle registrations across Europe fell by 2.1% in January, totaling 995,271.