Tesla sales drop, with declining demand in key markets and growing concerns over CEO Elon Musk’s political affiliations. The latest Tesla reports indicate a sharp decline in sales across Europe, China, and the U.S., sparking worries about long-term performance.
Tesla’s Global Sales Decline
Tesla’s latest sales figures paint a troubling picture for the EV giant. In France, sales plunged 63% in January compared to the same period last year. Germany saw a 59.5% drop amid backlash over Musk’s support for the far-right Alternative for Germany (AfD) party. This marked Tesla’s worst January in Germany since 2021.
The situation is no better in China, one of Tesla’s largest markets. Sales declined 11.5%, while local rival BYD surged nearly 50% in the same period. Tesla is losing ground, with Chinese consumers increasingly favoring domestic brands.
In other major EV markets:
- UK sales declined.
- Sweden saw a 44% drop in Tesla registrations.
- Norway reported a 38% decline year-over-year.
Tesla Faces Trump-Related Backlash
As Musk’s ties to the Trump White House deepen, Tesla is facing what analysts call a “Trump-lash”. Investors worry that Musk’s political stances could harm Tesla’s brand image, especially in international markets.
“There is an argument to be made that Tesla is beginning to be penalized for Musk’s close relationship to Trump,” said Mike O’Rourke, chief market strategist at Jonestrading.
Meanwhile, the latest Tesla dealership attacks highlight rising tensions. A Colorado Tesla dealership was vandalized last week, the third such incident in just two weeks.
Trump Tariffs Could Hurt Tesla’s Supply Chain
Tesla is also bracing for potential tariffs under Trump’s economic policies. The administration’s trade plans could impact Tesla’s supply chain, affecting costs and profitability.
“We are still reliant on parts from across the world for all our businesses,” said Tesla CFO Vaibhav Taneja. “The imposition of tariffs would have an impact on our business and profitability.”
Stock Prices and Future Outlook
Tesla’s stock has also taken a hit. As of Monday morning, Tesla was trading at $350 per share, down from its December high of $480. Investors are concerned about Tesla’s ability to maintain growth, especially as competition intensifies.
Adding to the uncertainty, Tesla hasn’t introduced a new model since the Cybertruck launched in late 2023. The company has hinted at a more affordable EV coming in 2025, but no official details have been announced.With global sales slipping, political tensions rising, and tariff risks looming, the latest Tesla challenges suggest the EV leader could face a rough road ahead.
Source: Independent
