Dark Clouds Over Tesla as Global Sales Drop Sharply Amidst Musk’s Controversies

 

Tesla Faces Declining Global Sales as Elon Musk’s Controversial Actions Impact Brand Image

Tesla, the electric vehicle (EV) giant led by billionaire Elon Musk, is facing significant challenges in the global market as its sales take a severe hit across multiple regions. Once considered a trailblazer in the EV industry, Tesla's fortunes have rapidly shifted in recent months, and the company is now grappling with plummeting sales figures in key markets such as the European Union, the UK, and North America.

One of the most troubling statistics is the drastic drop in Tesla’s sales in Germany, the only European country that houses a Tesla factory. Sales in Germany have fallen by nearly 60 percent, signaling a major setback for the company. In France, the situation is similarly grim, with new Tesla registrations dropping by 63 percent compared to January 2024. Norway, a traditionally strong market for Tesla, saw a 38 percent decline in new registrations, while Sweden experienced a staggering 44 percent drop, with just 405 new Tesla vehicles registered in January 2025.

The decline in European sales is mirrored by a slowdown in the United States, although the drop in the American market has been less severe. However, the situation worsens when looking at the performance of Tesla's much-anticipated Cybertruck, which has seen sales fall by 22 percent from Q3 2024 to Q4 2024. The Cybertruck’s resale value has plummeted, leading to skepticism about its long-term viability in the marketplace.

These sales challenges compound Tesla’s already troubling financial performance. The company’s net income for the year from 2023 to 2024 dropped by 23 percent, and over the past two years, Tesla's income has declined by an alarming 40 percent. This financial downturn has had a direct impact on the company's stock performance, which has fallen by more than 16 percent over the past month and nearly 13 percent in the past week alone. Despite some investors maintaining optimism in Musk’s ability to lead a recovery, a significant sign of discontent emerged when Musk’s brother, Kimbal, sold off tens of millions of dollars in Tesla shares.

While a reduction in European EV subsidies is often cited as a contributing factor to Tesla’s struggles, the larger issue likely lies with Elon Musk himself. Musk’s increasingly controversial actions have tarnished his personal brand, and by extension, the image of Tesla. His involvement in far-right politics, including recent rallies with the Alternative for Germany (AfD) party, and inflammatory actions such as performing a fascist salute and retweeting neo-Nazi accounts, have significantly impacted public perception of both Musk and his companies.

Musk’s polarizing behavior has reached new extremes in 2025. He has been heavily involved in political stunts, including support for Donald Trump and controversial actions that have alienated a significant portion of the public. The company’s reputation has further suffered due to Musk’s leadership of the DOGE group, which has drawn criticism for its role in federal budget cuts and government employee investigations. As a result, Tesla’s favorability rating has dropped to an all-time low of 3 percent, according to financial services company Stifel, marking a significant decline in public trust since the poll began in 2018.

The financial implications of Musk’s personal politics are far-reaching. Tesla relies heavily on government incentives, drawing up to 43 percent of its revenue from selling regulatory credits. These credits are at risk, especially given the Trump administration's stance on cutting such schemes, which presents a massive contradiction to Musk’s own business interests.

Despite these setbacks, Tesla remains one of the most valuable companies in the world, with a market capitalization of just under $400 billion. However, the company’s future success is uncertain as it faces mounting challenges both in the marketplace and in public perception. Musk’s unrelenting focus on his political endeavors and controversial actions appears to have created a perfect storm for Tesla’s declining sales figures. While it may be too soon to declare the end of Tesla’s dominance in the EV market, the company’s recent struggles suggest that even the world’s richest individual may not be immune to the consequences of his actions.