The latest data reveals that Tesla's sales in the European market have significantly declined. In January 2025, Tesla registered only 1,141 new cars in France, the EU’s second-largest electric vehicle (EV) market, marking a 63% year-on-year drop. Tesla's sales in Sweden and Norway also plummeted. In Sweden, Tesla registered just 405 new vehicles in January, a 44% decrease compared to the same period last year. In Norway, registrations dropped by 38%, with only 689 new cars registered.
Some media outlets link Tesla's sales decline to its CEO Elon Musk’s increasing unpopularity in the region. Musk has been publicly intervening in European politics in recent months, using his social media platform to attack European leaders.
Notably, Tesla's sales in California, the largest electric vehicle market in the U.S., have also been consistently decreasing. In all four quarters of 2024, Tesla's car registrations in California saw declines, with its second most popular model, the Model 3, experiencing a sharp 36% drop in sales. Analysts believe that Tesla’s performance in California in January 2025, when only 1,141 vehicles were registered in France—down 63% year-on-year—marks its lowest point since August 2022. France's overall car market saw a 6.2% decline in January, while electric vehicle sales slightly dropped by 0.5%.
Tesla's market share in Sweden and Norway also dropped significantly. After Musk's frequent controversial statements on European affairs, the American EV manufacturer’s image in these countries suffered. In January 2025, Sweden registered only 405 new Teslas, a 44% decrease compared to last year. Norway saw a 38% drop in registrations, with only 689 units sold. In contrast, Sweden's overall car market grew by 14% in January, and Norway's market surged by 82%, driven by increased economic optimism.
Despite Tesla’s Model Y being the best-selling car in Sweden and Norway in 2024, a market sentiment survey by Sweden's Novus Group found that Tesla's image has been tarnished in recent weeks, with increasing negative feedback from consumers. Part of the reason for this is Musk's political views, which have sparked controversy across Europe.
In addition to strongly supporting U.S. President Donald Trump, Musk has expressed controversial views on European and other regional politics, which have drawn criticism from European governments, including Norway’s Prime Minister. A Novus survey after Trump’s election found that the proportion of Swedes with a positive view of Tesla dropped to just 11%.
Furthermore, data shows that in January 2025, Tesla's sales in the UK decreased by 18%, in Portugal by 31%, in Denmark and the Netherlands by around 40%, and in Spain by 75%.
Some media outlets tie this decline in Tesla's sales to Musk's increasing unpopularity. Musk has publicly interfered in European politics in recent months, using his social media platform to criticize European leaders, including the UK Prime Minister and Irish regulators, supporting Germany's far-right party, Alternative for Germany (AfD), and maintaining close relations with Italy's far-right Prime Minister. Musk also attempted to launch a "Make Europe Great Again" (MEGA) initiative similar to Trump's campaign.
In these countries, Musk’s favorability appears to be low. A recent YouGov poll found that most Germans and Britons believe Musk knows little about their countries and should stay out of their politics. Musk and Tesla have also been involved in a high-profile dispute with Scandinavian trade unions, tarnishing his image among organized labor on the continent.
Before the latest data release, Tesla's sales in Europe had already been declining. In 2024, the company’s EV sales in the EU fell by 13%. Tesla's sales in Germany dropped by 41% last year, while the overall electric vehicle market in Germany fell by 27%. The company has struggled in Germany due to an aging model lineup, increased competition, and the removal of government subsidies at the end of 2023.
Decline in California Sales
California, the largest EV market in the U.S., has also seen a decline in Tesla’s sales. Latest data shows that Tesla's new car registrations in California decreased in all four quarters of 2024, with its second most important model, the Model 3, seeing a 36% drop in sales for the entire year.
According to the California New Car Dealers Association, Tesla's sales in California decreased by nearly 8% in the fourth quarter of 2024 and by 12% for the full year, with Model 3 registrations falling by more than a third.
Although Tesla added its fifth model, the polarizing Cybertruck, to its lineup in 2024, registrations still dropped. While typical commercial factors played a role, including Model 3 upgrades at the start of the year, the company may have also lost part of its California business due to Musk’s active role in the U.S. presidential election.
Musk, 53, spent at least $288 million supporting Trump and other Republican candidates in the 2024 U.S. presidential election. In California, during the 2024 election, the number of voters supporting Democratic presidential candidate Kamala Harris outnumbered Trump’s supporters by 20.2%.
Despite this, Tesla still maintains the largest share of California’s zero-emission vehicle market, although its market share dropped from 60.1% in 2023 to 52.5%. Several Tesla models saw sales declines in the U.S. market in 2024, with the Cybertruck being the only exception, as it began sales at the end of 2023.
In California’s EV market, Honda and Hyundai emerged as the biggest winners, with their market shares increasing by 1.8% and 1.5%, respectively. The California New Car Dealers Association stated, “Tesla’s outlook in California doesn’t look optimistic. The company’s dominance in the electric vehicle market continues to waver, with the brand experiencing a fifth consecutive quarter of declining registrations.”
Musk relocated Tesla’s headquarters from California to Texas in 2021 after disregarding California’s lockdown policies during the COVID-19 pandemic. However, one of Tesla's EV assembly plants remains in Fremont, California.
In July 2023, Musk announced that his social media company, X, and aerospace company, SpaceX, would also relocate to Texas, citing a new law signed by California Governor Gavin Newsom. This law prohibits schools from requiring teachers to notify parents about students' gender identity changes, which angered Musk.
After Trump’s victory, Newsom also threatened to remove Tesla from the list of brands eligible for potential EV subsidies. Analysts suggest that if Trump follows through on his campaign promise to cancel federal tax credits for electric vehicles, it could further affect Tesla’s sales. Musk’s political engagement may have contributed to the company's poor performance.
