Sales Decline Overview

Tesla is facing a significant decline in sales across Europe, with new registrations plummeting nearly 45% last month. This downward trend has raised eyebrows and prompted speculation about a potential backlash from buyers in response to the controversial actions of CEO Elon Musk, particularly his ties to Donald Trump and political activities since his ascent to prominence in the former U.S. administration.

Sales Data

According to data from Jato Dynamics, Tesla sold under 16,000 vehicles across 25 European markets—including the EU, UK, Norway, and Switzerland—in February, marking a staggering 44% drop compared to the same period last year. The company's market share has also experienced a notable decline, falling to 9.6%, which is the lowest figure recorded for February in five years. For context, Tesla's sales had already dipped by 45% in January, dropping from 18,161 vehicles to just 9,945.

UK Market Performance

Interestingly, while Tesla struggles in the broader European market, the UK saw a counter trend. The Society of Motor Manufacturers and Traders reported an almost 21% increase in new Tesla registrations last month, with popular models like the Model 3 and Model Y ranking as the second and third most popular vehicles after the Mini Cooper.

Impact of Musk's Political Involvement

Analysts are keenly monitoring how Musk's active political involvement might be influencing consumer sentiment. His recent endorsements of far-right parties, controversial statements at public events, and personal attacks on political figures in the UK have sparked protests at Tesla dealerships. All these factors may contribute to dissuading potential buyers.

Ongoing Transition of Tesla