Tesla’s sales in Europe have dropped by 45% compared to the same time last year, marking a significant decline for the American automaker, which had long been seen as the leader in the electric vehicle market.
Tesla’s sales fell from 18,161 in January 2024 to 9,945 in January 2025, according to a report covering the European Union, the United Kingdom, and the European Free Trade Area (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland.
Market analysts attribute the sales drop to several factors, including increased competition, a slowdown in new electric vehicle purchases, and possibly the “toxic” behavior of its CEO, Elon Musk.
In EU countries alone, sales dropped from 15,130 in January 2024 to 7,517 in January 2025, a decrease of around 50%.
Musk has faced criticism for various issues, including his role in the U.S. Department of Government Efficiency (DOGE), which canceled contracts and reduced staff in the U.S. government, his posts on X, and his support for far-right politicians globally, including in Europe (e.g., AfD).
“It is too early to say how permanent the decline will be due to Musk’s involvement with the far-right in Germany, but it seems unlikely this involvement will be positive for Tesla,” said an analyst to the “Washington Post“.
Tesla employees and investors have long expressed concerns that Musk has damaged the company’s image and openly suggest it might be better for him to step down.