Tesla’s sales in Europe are experiencing a significant downturn, with a particularly sharp decline in Germany, the continent’s largest electric vehicle market. This drop has coincided with growing disapproval of CEO Elon Musk’s political stances and activities.
Sales of Tesla cars in Germany plummeted by 76 percent in February compared to the previous year, according to data released Wednesday by the German Association of the Automotive Industry. This marks the second consecutive month of declining sales for the U.S. carmaker in the country.
The flagging demand for Teslas extends across other European nations. This downturn appears to be linked to Mr. Musk’s increased public support for right-wing political parties in Europe and elsewhere on X, his social media platform. His actions have been viewed as controversial by many European consumers.
This period of declining sales has also impacted Tesla’s financial performance. The company’s share price has fallen by over 40 percent since its peak in December, effectively erasing the gains made after the election in November. At that time, some investors were optimistic about the potential benefits of Mr. Musk’s connections to the White House. However, Tesla shares closed up 2.6 percent on Wednesday.
In Germany, Mr. Musk’s outspoken support for a far-right party prior to last month’s parliamentary elections and his calls for people to stop focusing on “past guilt” may have alienated potential customers. His commentary has been viewed by some as insensitive and out of touch with German sensibilities.
Mr. Musk and Tesla are increasingly becoming the focus of protests and vandalism. Activists in London have launched a campaign urging people to divest from their Teslas and cancel their accounts on X. In Strasbourg, France, an activist group is distributing stickers that warn the Tesla chief to “Stay Away from the E.U.” In a particularly concerning incident, Tesla vehicles in a parking lot in southern France were set on fire over the weekend. Prosecutors have indicated that the event was not an accident.
