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In January, we observed a significant drop in Tesla’s sales across Europe, indicating a potential decrease in demand for the American electric vehicle brand. This comes after CEO Elon Musk’s increased involvement in the region’s political landscape.
According to statistics from the European Automobile Manufacturers’ Association, Tesla sold just 9,900 cars in Europe last month—a steep decline of over 45% compared to January 2024. Their market share in new car registrations also took a hit, dropping to 1% from 1.8% during the same timeframe.
This reduction coincides with Musk’s recent controversial involvement in EU politics. Notably, he supported Germany’s far-right Alternative for Germany (AfD) party before their elections, which sparked considerable backlash across Europe. Elon Musk has also criticized the EU, labeling it “undemocratic” just last November.
Despite Tesla’s downturn, the overall market for battery electric vehicles in Europe is booming. In January alone, consumers snapped up 166,000 pure electric cars, a 37% rise from the previous year. Sales of fully electric vehicles surged forward, outpacing all other vehicle types, while petrol and diesel car sales dropped significantly—down 20.5% and 26.5%, respectively.
These statistics encompass the EU, the UK, and additional markets like Norway, a major player in Europe’s EV landscape.
In contrast, SAIC Motor, a Chinese state-owned automotive company that’s established a footing in the EU and partnered with Audi in China, saw European sales jump 37% to 23,000 vehicles this January. This marks one of the largest year-on-year sales increases among major manufacturers in the area.
Across Europe, total new vehicle registrations fell slightly by 2.1% in January, totaling 995,271 units.
Industry experts suggest another reason for Tesla’s dwindling sales might be that potential buyers are holding off until the new Y model hits the market in the first half of 2025.
