Tesla’s global sales are declining, potentially due to consumer reaction against CEO Elon Musk’s political activities, particularly his association with the Trump Administration.
The company’s stock experienced a significant drop of 15% by the close of trading on Monday, marking its worst decline . This occurred amidst a broader market downturn triggered by President Donald Trump’s suggestion of an impending recession on Sunday. The President addressed Tesla’s situation in a Monday night post, attributing the EV company’s boycott to “radical left lunatics” and promising to “buy a brand new Tesla.”
The car manufacturer could benefit from this endorsement, as recent figures indicate substantial sales decreases in various global markets. According to the (ACEA), Tesla’s European sales in January were just under 7,517 vehicles, a 50% decrease from the previous January. This is in contrast to the overall growth in battery and hybrid electric vehicle sales in the EU, driven by the region’s continued focus on reducing emissions from new vehicles.
In Germany, the largest EV market in the EU, overall electric vehicle sales increased by 30% year-over-year in February. However, Tesla’s sales in Germany decreased, with fewer than 1,500 new Teslas registered in the country during February.
Other European nations also experienced a drop in sales. Reports indicate that between January and February 2025, Tesla’s sales fell by 50% in Portugal and 45% in France , while sales decreased.
The sales decline is not limited to Europe. In Australia, data from the Electric Vehicle Council reveals that Tesla’s sales plummeted by over 70% compared to the previous year. The reported 1,592 sales in February contrast sharply with the 5,665 sales recorded in February 2024, according to .
Meanwhile, Tesla’s shipments from China experienced a 49% decrease in February, with 30,688 vehicles shipped, marking the lowest monthly figure since July 2022, as reported by . Tesla is facing increasing competition from local EV manufacturers in China. For instance, Chinese automaker BYD sold over 318,000 electric and hybrid vehicles last month, a 161% increase compared to the previous year.
In California, the largest domestic market for EVs due to the state’s zero-emission vehicle mandates for automakers, Tesla’s sales have been declining for the fifth consecutive quarter, as per the from the California New Car Dealers Association (CNCDA).
However, not all markets are experiencing a downturn. The UK saw record EV sales in 2024, and Tesla’s sales increased by 20% in February.
Musk has not directly addressed the sales decrease. However, when questioned by Fox Business’s Larry Kudlow about managing his various businesses, the billionaire replied, “With great difficulty.”
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