Elon Musk blamed as Tesla sales plummet 45% across Europe with drivers put off from buying EVs
Elon Musk’s Tesla has seen sales plummet by 45 per cent across European markets in the first month of the year, causing shares in the automaker to drop by almost 10 per cent.
Tesla sales in Europe fell from 18,161 in January 2024 to just 9,945 in January 2025, according to analysis by the European Automobile Manufacturers’ Association.
The fall in shares prompted the brand’s valuation to drop below $1trillion (£790billion) for the first time since November 2024.
The figures are even more dramatic when looking at the EU alone, where sales plummeted by 50 per cent from 15,130 to 7,517 vehicles.
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Tesla’s decline stands in stark contrast to the broader European electric vehicle market, which grew by more than a third during the same period.
More than 160,000 electric vehicles were sold in Europe last month, compared with about 120,000 in January 2024.
This marks a concerning trend for Tesla, which already saw sales fall last year for the first time in more than a decade.
The company has been facing mounting pressure from Chinese and other manufacturers in the competitive European market.
Chinese manufacturer BYD has been making significant inroads in the European market, offering standard features for far cheaper prices than other manufacturers.
SAIC Motor, China’s largest EV manufacturer, sold 22,994 cars last month across the EU, UK and EFTA – more than double Tesla’s figures. SAIC’s sales rose approximately 37 per cent compared to January 2024.
Analysts point to increasing competition as the main factor behind Tesla’s January sales slump as some potential buyers may also be waiting for Tesla’s refreshed Model Y, expected in May 2025.
Ginny Buckley, chief executive of Electrifying, said: “There’s no doubt that Tesla revolutionised the EV market, but recent research with our audience at Electrifying.com reveals a surprising shift – 59 per cent say Elon Musk is putting them off buying a Tesla.
“But while our findings show Musk’s influence on the brand is becoming increasingly polarising, it’s too simplistic to attribute the drop in sales to simply that.
“Tesla has an ageing model lineup and, with over 130 mainstream EV models now available in the UK – compared to just 25 in 2020 when we launched Electrifying.com – competition has never been fiercer.”
Elon Musk’s controversial political activities have been cited as another factor in Tesla’s declining fortunes.
The billionaire has made waves by supporting jailed far-right activist Tommy Robinson and the German far-right party AfD, which placed second in the nation’s elections earlier this week.
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Peter Bardenfleth-Hansen, former senior director of Tesla’s Europe, Middle East and Asia division, told the BBC: “There’s no doubt his flirting with the right in politics, running around on TV with a chainsaw is not exactly helping his image.
“He may be getting a bigger fanbase within a specific type of clientele, but they’re not the ones that are buying the Teslas.”
Despite Tuesday’s drop, Tesla shares remain up 51 per cent over the past 12 months, though they’ve fallen 24 per cent year-to-date.