Tesla Faces Obstacles in the European Market with Declining Sales
Tesla, long the unchallenged leader in the electric vehicle (EV) sector, is currently seeing a significant fall in global sales. While the brand remains synonymous with EV innovation, new statistics show that Tesla’s image is deteriorating, notably in Europe and Australia, as CEO Elon Musk’s political ties have sparked controversy.
Tesla’s challenges in Europe:
According to EV site Electrek, Tesla’s European sales have decreased considerably, with deliveries down 50% last month compared to the same period a year ago. Germany, Europe’s largest EV market, has suffered the most worrisome decline—Tesla car deliveries in the nation have dropped by 76% year on year, from over 6,000 in February 2024 to only 1,429 in February 2025. This declining trend corresponds with Musk’s recent endorsement of Germany’s far-right AfD party, which has caused criticism in the area. According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla registrations declined by 45% throughout the European Union, including the United Kingdom, Iceland, Norway, Switzerland, and Liechtenstein, between January 2024 and January 2025.
Reduced revenue in Australia:
Tesla’s issues are not restricted to Europe. In Australia, Tesla sales fell by over 72% in February alone. The business sold only 1,592 automobiles this month, a significant decrease from the 5,665 units sold in the same time in 2024. This sharp reduction suggests that Tesla’s problems may spread beyond just one or two important regions.
Political Controversy and its Effects on the Tesla Brand:
Musk’s developing alliances with political leaders, like former President Donald Trump, have contributed to a picture of Tesla as a politically charged brand. The issue erupted after Musk performed a so-called “Roman salute” gesture on Inauguration Day, repelling potential consumers. Furthermore, sources indicate that Musk’s engagement with the Department of Government Efficiency (DOGE), as well as the sacking of federal employees as part of this project, has increased customer dissatisfaction.
