Tesla Sales Plummet in Europe and the US: Is Elon Musk to Blame?

Declining Sales in Europe

Tesla sales in Europe are experiencing a significant decline, with year-over-year drops of 18% in the UK, 31% in Portugal, and over 40% in several countries including Denmark, Sweden, Norway, and the Netherlands. The overall trend suggests that Europeans are losing interest in Elon Musk’s luxury electric vehicles.

Media Outlets Link Sales Decline to Musk’s Unpopularity

Several media outlets have linked the company’s cratering sales to its CEO’s growing unpopularity. Musk has been openly meddling in European politics, using his social media platform to attack European leaders, including the prime minister of Britain and regulators in Ireland. He has also endorsed a far-right party in Germany with alleged ties to neo-Nazis and fostered ties with Italy’s right-wing prime minister.

Low Favorability in Europe

A recent YouGov poll found that most citizens of Germany and the UK thought Musk was ignorant of their countries and should stay out of their politics. Musk’s favorability in many European countries is low, with some polls suggesting that he is seen as a divisive figure.

Battle with Scandinavian Unions

Tesla recently engaged in a high-profile battle with several Scandinavian unions, further tarring his image with organized labor on the continent. Europeans may sense that Musk wants to export his feudalistic economic policies to their countries and aren’t eager to let that happen.

Other Factors Contributing to Declining Sales

While Musk’s unpopularity may be a contributing factor, other factors may also be at play. Tesla’s sales were already declining in Europe prior to the recent numbers. The company’s EV sales saw a 13% drop in the EU last year, experiencing declines in Germany, Italy, France, and other places. The introduction of rival EV companies and increasingly steep regulatory hurdles may also be contributing to the decline.

Declining Sales in California

Tesla’s sales also recently plummeted in California, the company’s biggest market in the US. Bloomberg reports that sales of the Model 3, considered the company’s second most popular model, "plunged 36%" from the previous year. California sales for Tesla fell approximately 8% in the fourth quarter of 2024 and were down 12% for the year, representing the first annual drop in sales for Musk’s company in the state.

Possible Reasons for Declining Sales

Several possible reasons for declining sales have been suggested, including Musk’s comparison of California to communist China, his encouragement of companies and people to move out of the state, and his recent association with Donald Trump. Additionally, Musk’s recent Nazi salute at a political rally has sparked outrage and may be contributing to the decline in sales.

Global Sales Decline

Tesla’s sales were down globally by 1.1% last year, the first decline for the company in over a decade. The Associated Press has reported on the decline, citing the company’s struggles in Europe and the US.

Conclusion

In short, Elon Musk may be such a huge asshole that it is effectively killing his business. While there are many possible reasons for the decline in sales, it is clear that Musk’s unpopularity and divisive behavior are contributing to the problem. As people around the world increasingly seem to hate him, it remains to be seen whether Musk can find a way to salvage his business empire.