Tesla Sees 50% Decline in Europe as Musk’s Political Stance Faces Backlash

TradingKey - On Wednesday, research organization New AutoMotive released preliminary data revealing Tesla's dire situation in the European market.

In May of this year, Tesla’s new car sales in the UK saw a dramatic year-on-year decline of over 45%, with only 1,758 vehicles sold compared to 3,244 during the same period last year.

Meanwhile, 794 units were sold in the Spanish market, representing a 29% decrease compared to 1,118 units sold in the same period last year. In Portugal, sales plummeted by 68%, dropping from 913 units in the same period last year to just 292 units.

At the same time, data from the French automotive industry association Plateforme Automobile indicates that its sales in France were just 721 units, marking a staggering drop of 67% and hitting the lowest record since July 2022.

The previous trends were also concerning, as Tesla electric vehicle sales in the EU market fell by 50.3% in January this year compared to the same month last year (while EU electric vehicle sales increased by 37% during that period).

The decline in Tesla's sales may be partially related to Musk's political actions. He has openly supported far-right parties in Europe, criticized UK and French government policies, and called for a new election in Britain, which has generated consumer backlash. Some owners have even displayed slogans such as “I bought my car before he went crazy” to distance themselves from him.

Surveys indicate that 59% of UK electric vehicle owners and potential buyers say Musk’s influence would deter them from purchasing a Tesla.

However, Tesla's stock performance has been strong since May, with shares rising more than 22% following Elon Musk's commitment to focus on business operations.