Tesla's once dominant position in the European car market is faltering.
Where the brand was synonymous with progressive technology and sustainable mobility for years, it is now facing declining sales and a growing image problem. In several countries, Tesla car sales are plummeting, and that does not only seem to have to do with the competition. The controversial statements and political positions of CEO Elon Musk play an at least as big a role in Tesla's decline in popularity.
sales figures plummet
Tesla's declining sales figures in Europe are downright striking. In Germany, home to Tesla's only European production plant, new Tesla registrations fell by 59,5 percent in January compared to the same period last year. Where Tesla still had a market share of 2023 percent in Germany at the beginning of 14, that number now only remains at 4 percent.
Similar declines are also being recorded in other European countries. In France, Tesla sold 63 percent fewer cars than a year ago. Norway, known as a leader in electric mobility, registered a 38 percent drop in sales. On average, Tesla's sales in Europe plummeted by 48 percent. The impact of these figures cannot be underestimated, especially in a market where Tesla has been the undisputed leader for years.
price reductions
Although Tesla continues to market advanced electric cars, the company faces fierce competition. European brands such as Volkswagen, BMW and Mercedes-Benz are increasingly releasing competitive electric models, often with higher build quality and an image that better suits the European public. In addition, the Chinese BYD is gaining ground, a brand that focuses strongly on innovation and price competition.
To compensate for the declining sales figures, Tesla has lowered the prices of several models. However, this does not seem to be enough to turn the tide. The recent price drops are actually causing some customers to wait for even steeper discounts, while others fear a decreasing residual value of their Tesla.
If Tesla wants to maintain its leading position in the EV market, the brand will have to focus not only on technological innovation, but also on strategic communication and a stronger decoupling from Elon Musk the person. The coming months will be crucial in determining whether Tesla can recover from this blow or whether the downward trend will continue.
In addition to the economic and market factors, there is another, perhaps more important reason for Tesla's decline: the attitude and statements of CEO Elon Musk. The eccentric billionaire has caused a stir several times in recent months with political and ideological positions that have not been well received everywhere.
His open support for the far-right Alternative für Deutschland (AfD) party in Germany has put off many European consumers. In a country where history heavily shapes political debate, such statements are not taken lightly. On top of that, his sympathies for Donald Trump and Republican positions in the United States have caused revulsion among progressive European buyers.
Other controversial statements by Musk have also caused bad blood. For example, he called Germany's migration policy "suicide" and lashed out at the German government and social institutions. This led to public outrage, with even the German government distancing itself from Musk's statements. As a result, some Tesla owners prefer not to openly associate their car with the brand and even distance themselves from the image of the Tesla driver. This phenomenon has now been referred to as "Tesla shame".
Tesla in Europe
The question is whether Tesla can repair this damage to its image. The brand is still a technological leader and has a loyal fan base. However, it seems that more and more consumers are looking not only at the technological progress of a car, but also at the values and image of the company behind it.
Musk's influence on Tesla is undeniable. Just as Apple was inextricably linked to Steve Jobs for a long time, Tesla is almost seen as an extension of Musk himself. But where Jobs was mainly admired, Musk has become a polarizing figure. This has direct consequences for the sales figures, especially in a politically and socially aware market like Europe.
