Elon Musk’s endorsement of the political party ‘AfD’ results in consumer backlash
Tesla, which was a market leader in electric vehicles (EVs), is currently experiencing a sharp decline in Germany. In February 2025, Tesla’s sales declined by a whopping 76%, after a 60% drop in January in Germany. The steep fall, according to Germany’s road traffic agency, is a cause for concern regarding the automaker’s prospects in one of its key European markets.
A Steep Decline in a Growing Market
Surprisingly, overall EV sales in Germany jumped 30.8% in February 2025 to 35,949 vehicles sold. While other EV sellers are reaping the rewards of growing demand, Tesla’s drastic fall indicates a more serious concern than mere marketplace competition. Declines in other European countries highlight the company’s struggles in Germany as well.
Tesla Sales Drop Across Europe
Tesla’s problems are not just confined to Germany. Throughout Europe, the company has experienced a precipitous decline in sales. Statistics indicate that Tesla’s sales dropped by:
| % Decline in Tesla Sales | Place |
|---|---|
| 45% | France |
| 48% | Norway and Denmark |
| 55% | Italy |
| 53% | Portugal |
| 24% | Netherlands |
| 10% | Spain |
The downturn in these major markets reflects a declining demand for Musk’s cars, with Tesla Germany being the hardest hit. The UK was among the few exceptions, where Tesla sales rose by 20%, but even there, the overall EV market share of the company fell as rivals picked up pace.
Tesla Political Backlash and Elon Musk Controversy
One of the key reasons behind faltering Tesla sales in Germany is the political activism of CEO Elon Musk. Musk’s open endorsement of far-right political parties, including the AfD party, which has been mired in controversy, has distanced many prospective customers. His appeal to Germans to break a “focus on past guilt” was widely criticized, prompting boycotts organized by activists.
The criticism has not stopped in Germany alone. Strasbourg protestors distributed stickers advising Musk to keep out of the European Union. Tesla cars were burned as part of a protest against the billionaire in southern France. There have also been activist calls to owners of Teslas to ditch their brand and drop their account on Musk-owned X (Twitter).
Competition and Market Shifts
While political issues have been the reason for Tesla’s downfall, increased competition within the sector has also been instrumental. European car manufacturers are fiercely increasing their EV presence, offering consumers greater choices. Tesla, which was considered the king of EV technology, now has serious competition in the form of Volkswagen, BMW, and Mercedes-Benz. Each of its rivals has rolled out competitive electric vehicles.
Tesla’s troubles are not limited to Europe. In the world’s biggest EV market, China, Tesla’s production declined by almost 50% in February because of intense competition from local brands such as BYD and Xiaomi. While in Europe, political reasons have contributed, in China, Tesla’s woes are caused by pricing pressure and the quick improvement of local EV manufacturers.
In the US, investor faith in Tesla has diminished. The share price of the company has fallen more than 40% since December, erasing most of the post-Donald Trump election gains. Some investors now expect Musk to be held accountable, with shareholder activist groups demanding that his pay be linked to environmental and governance targets.
Tesla’s Future in Germany and Beyond
Part of Tesla’s falling sales in Germany could be because consumers hold out for an upgraded Model Y. However, industry experts predict that political controversies and rising competition are the chief causes of Tesla’s sales dip.
Although Elon Musk seems optimistic about the company’s future growth. He has reaffirmed his intentions to launch self-driving technology, including autonomous cabs, as part of the growth strategy of the company.
In the coming days, Tesla’s performance in Germany and other major markets will be watched with great interest. The next set of financial reports and market response will tell if Tesla can bounce back or if its troubles in Germany are warning signs of a larger collapse in Europe.
