Tesla's Sales Are Declining Worldwide. How Serious Is It and Where Is It Happening?
It seems that Elon Musk, Trump, and DOGE are not beneficial for the electric vehicle industry.
Elon Musk has managed to build a business empire, with Tesla being his most prominent and profitable company. For many, the name "Tesla" has become synonymous with electric cars. However, the brand's association with Donald Trump and its connection to the far-right has had a negative impact on sales.
Recently, various reports indicate that Tesla's sales have dropped dramatically worldwide, particularly due to Musk's ties to the Trump administration and controversial decisions like the firing of federal employees. According to a publication specializing in electric vehicles, deliveries in Europe fell by 50 percent compared to the same month the previous year. A controversial gesture by Musk, similar to the "Roman salute" he performed on Inauguration Day, has also contributed to this decline.
In Germany, one of the largest markets for electric vehicles in Europe, Tesla sales plummeted by 76 percent. In February 2025, the company only delivered 1,429 vehicles in the country, compared to over 6,000 units sold in the same month the previous year. This concerning trend is accompanied by Musk's support for the far-right AfD party in the recent German elections.
According to the European Automobile Manufacturers Association, registrations of Tesla vehicles in the European Union, as well as in the UK, Iceland, Norway, Switzerland, and Liechtenstein, fell by 45 percent from January 2024 to January 2025. The situation is not limited to Europe; sales in Australia also decreased by almost 72 percent in February, dropping from 5,665 vehicles to just 1,592 in a year.
In the United States, the outlook is not better. In California, the largest electric vehicle market in the country, registrations of Tesla cars declined in every quarter of 2024, with an overall decrease of 12 percent during the year. Recently, some Tesla owners have decided to sell their electric vehicles due to the public perception associated with supporting Musk's actions.
As long as the relationship between Musk and Trump persists, the company may continue to face a decline in its business. Consumers more inclined to purchase electric vehicles tend to be environmentally conscious individuals and, in many cases, hold liberal ideologies. Even if cooperation between Musk and Trump ends, it may be too late for Tesla to regain its image among those potential buyers.
