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Musk’s political controversies drive down Tesla’s European market share

David Ijaseun by David Ijaseun
April 4, 2025
in Business, Electric Vehicles
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Musk’s political controversies drive down Tesla’s European market share
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Tesla, the electric vehicle (EV) giant, is facing a significant sales slump across Europe, with March marking its third consecutive month of declining sales in key markets. The latest figures show that Tesla’s performance in countries like France, Sweden, Denmark, and the Netherlands has weakened, reflecting broader struggles for the brand in the European market.

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The company’s sales in these markets have plummeted by as much as 65% in Denmark and 63% in Sweden. For instance, in France, Tesla registered just 3,157 cars in March, a 36.83% decrease compared to last year. Over the first quarter, Tesla’s market share in France dropped from 2.55% to just 1.63%, a worrying trend that mirrors similar losses in Sweden and the Netherlands.

Tesla’s challenges are multi-faceted

As competition from Chinese EV manufacturers grows, Tesla’s relatively aging lineup has made it harder to compete on price. According to Ben Nelmes, CEO of New AutoMotive, the lack of competitive pricing in Tesla’s offerings has exacerbated the situation. “Tesla’s weak numbers in Europe are the result of a combination of factors,” Nelmes explained. “The company has failed to develop models that can compete on price, and Musk’s political involvement is alienating many consumers.”

Political Tensions Add to the Strain

Adding fuel to the fire, Tesla’s CEO Elon Musk’s involvement in U.S. politics has become a controversial issue in Europe. Musk’s open support for far-right political parties, including Germany’s AfD, has sparked protests against the brand, leading to vandalism and acts of defiance at Tesla showrooms in cities like Berlin, Stockholm, and Rome. On March 31, an overnight fire destroyed 17 cars at a Tesla dealership in Rome, an act Musk labeled as “terrorism.” Protesters argue that Musk’s political leanings undermine the brand’s reputation, with some environmental groups even carrying out “peacefully disruptive” protests at Tesla stores.

Luca Del Bo, president of Italy’s Tesla owners club, expressed frustration, saying, “We’re all embarrassed. We’d all be happy, of course, if Musk just went back to being a CEO.” Despite the challenges, some markets, such as Spain and Italy, have shown growth in Tesla’s sales, with March registrations up by 34.3% in Spain and 51.3% in Italy. However, these gains were overshadowed by the significant losses in other parts of Europe, leaving Tesla to grapple with an increasingly complex landscape.

Shifting market dynamics and new challenges

The electric vehicle market in Europe is becoming more competitive, with both traditional automakers and new entrants offering more affordable options. Tesla’s failure to adapt quickly enough to these changing dynamics, alongside Musk’s polarizing political persona, has led analysts to predict more struggles. Eric Schiffer, CEO of the Patriarch Organization, noted, “In Europe, Tesla needs to focus more on value and competitiveness rather than tying itself to political figures.” With Tesla’s first-quarter global delivery figures set to be released soon, the company is under increasing pressure to regain its footing in a rapidly evolving and contentious European market.

Read more on From decline to desert: Tesla sales fall in Europe, bets on Saudi launch to regain global traction

Tags: electric vehiclesElon MuskHeadlineTesla

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