Tesla is confronting turbulent times across multiple continents, as the American electric vehicle giant grapples with a steep decline in sales and a growing chorus of owner protests over CEO Elon Musk’s potentially polarising political stances.
Recent data from several European markets paints a worrying picture for Tesla. In Scandinavia, where electric vehicles have become the norm, with Norway reporting an EV share of 94.7 percent in new car sales, Tesla’s registrations have nearly halved. Sweden, too, has witnessed a significant drop with the popular Model Y falling by over 50 percent compared to February of the previous year. Even in France, where EVs currently command a 22 percent share of the new car market, Tesla’s numbers have nosedived by 26 percent in February alone.
Halfway around the world in Australia, the scenario is similarly bleak. Official figures from the Electric Vehicle Council reveal a dramatic 71.9 percent plunge in combined Model Y and Model 3 sales for February compared to the previous year. While supporters argue that the downturn is due to low inventory levels and anticipation for new model updates, the data indicate an even starker picture for the Model 3, which experienced an 81.4 percent fall.
Tesla’s traditionally dominant position in Australia, where it has long commanded over half of all EV sales, is under serious threat. Industry analysts have linked this decline not only to the arrival of fierce competition from other manufacturers, including new entrants from China such as the BYD Seal, but also to mounting disquiet over Musk’s political entanglements. The decline in Tesla’s market share reflects not just temporary inventory issues or customers waiting for a refreshed Model Y, but a broader loss of confidence driven by the CEO’s outspoken political leanings.
Perhaps the most dramatic impact of Musk’s recent political actions is being seen among Tesla owners themselves. A growing number of customers, once ardent supporters, have begun distancing themselves from the brand. Sparked by Musk’s controversial Nazi-style salute during his speech at the post-inauguration celebration for President Donald Trump in January, many Tesla owners are now actively selling their vehicles and even divesting from Tesla stock.
Filipos, a self-proclaimed "Tesla fanboy" from suburban Philadelphia, described his decision to trade his Model 3 Performance, with 30,000 miles on it, for an Acura as a moral necessity. "When you own a vehicle like that, you are advertising for that company," he said, echoing the sentiment of many who have left the brand. Social media has since exploded with posts, some featuring celebrities, declaring a break with Tesla, as the company becomes increasingly associated with hate and extremism.
Protests have also sprung up outside Tesla showrooms across the US and internationally, with demonstrators branding the vehicles as “Swasticars” and urging others not to buy what they see as a symbol of a CEO whose politics they cannot support.
The dual challenge of declining sales and escalating owner protests poses a significant threat to Tesla’s global reputation. In Europe and Australia, consumers are increasingly aligning their purchasing decisions with broader ethical and political considerations. With far-right political associations and provocative statements casting long shadows over the brand, what was once the hallmark of innovation in electric mobility now finds itself embroiled in a battle over values.
As the overall electric vehicle market continues to grow robustly, Tesla’s predicament serves as a cautionary tale about the risks of mixing corporate leadership with polarising political stances. Whether this trend is a temporary setback or indicative of a deeper, long-term shift in consumer sentiment remains to be seen. For now, the challenges are clear: Tesla must not only reinvigorate its product lineup and address competitive pressures but also reckon with the ideological divides that are increasingly influencing its market performance.
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