Elon Musk may be "saving" money for the federal government, however questionably — but it'll take a minor miracle for him to salvage his automaker's situation across the pond.
According to the latest data from the European Automobile Manufacturers' Association (ACEA), sales of new Tesla cars in the continent have plummeted to just 9,945 vehicles in January, down from 18,161 in the same period last year, per the Guardian. That's a whopping 45 percent decrease.
As sales collapse, the automaker's usually stellar stock position has also taken a ding, despite soaring to an all-time high in the wake of Donald Trump's election victory. As of Tuesday morning, Tesla shares dropped by more than 8 percent, for a cumulative decline of 23 percent in the last month of trading.
While other major stocks are trending downwards, "Tesla shares are now by far the biggest decliner among the mega-cap technology stocks, weighing heavily on the group's overall performance," according to Bloomberg.
The uninspiring numbers almost certainly indicate that Musk's controversial role in the Trump administration, his dalliance with far-right forces at home and abroad, as well as his polarizing personal behavior — like his thinly-veiled Nazi salute — are all blowing back on his businesses.
It also coincides with Musk wading deeper into European politics. In the past months, the world's richest man threw his support behind Germany's far-right AfD party — whom he told to get over their Nazi guilt — and incurred the ire of leaders such as UK Prime Minister Keir Starmer and French president Emmanuel Macron, who have accused Musk of spreading misinformation.
The public has also voiced their dissent. Tesla dealerships in Europe have been targeted with vandalism, ranging from being defaced by spray paint with anti-Nazi slogans to getting smashed up, such as the Tesla showroom in the Hague. Even Tesla owners, infamously immune to feelings of embarrassment, are expressing their buyer's regret with anti-Elon stickers.
What's really telling is that Tesla's poor showing comes during what is otherwise a promising period for electric cars, with the European market for new EVs growing by 34 percent in January to 124,341 units, despite overall new vehicle registrations declining by 3 percent, according to ACEA data cited by the Guardian. A rising tide, it seems, doesn't always lift all boats.
This also follows a dismal year for Tesla sales in Europe. In 2024, sales in the continent dropped by 13 percent, with even famously EV-eager nations like Norway, where 88.9 percent of all new cars sold are electric, seeing a 37.9 percent dip. At this point, it doesn't seem poised for a rebound.
Beyond Musk's unpopular antics, Tesla is also facing steeper competition. In the UK this January, its Chinese rival BYD recorded more vehicle registrations than Musk's automaker for the first time, the Guardian noted, while its overall European market share has fallen from 1.8 percent to 1 percent.
Maybe the hype is finally starting to even out. Tesla has long enjoyed an exorbitant valuation and stock price despite its relatively small share in the US auto market, nevermind its repeated failure to deliver on key promises like fully autonomous vehicles. Last year was the first time that it suffered an annual decline in its sales. Now it may be well on its way to an unwanted repeat.
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