Tesla experienced a strong decrease in sales in Germany and other parts of Europe in February, a recession that has affected the price of its actions and caught attention to the political controversies surrounding CEO Elon Musk.
In Germany, the largest electric vehicle market in Europe, Tesla sales fell 76 percent compared to the same month last year, according to data published on Wednesday by the German association of the automotive industry. This marks the second consecutive month of decreased sales for the company in the country.
The demand for Tesla vehicles has also weakened in other European nations, coinciding with Musk's greater political participation. Since he aligned with the president of the United States, Donald Trump, and used X, the social networks platform he possesses, to promote extreme right parties, the public feeling towards Tesla has changed.
The price of Tesla shares has decreased by more than 40 percent since its peak in December, erasing the profits it achieved after Trump's electoral victory in November, when investors speculated that Musk's influence on the White House could benefit their businesses.
In Germany, Musk's open support to an extreme right party in the period prior to the parliamentary elections last month, along with his call to the country to go beyond “an focus on past guilt”, may have alienated even more to potential clients.
Both Musk and Tesla have faced a violent reaction from activists and protesters. In London, activists have urged Tesla owners to leave their vehicles and close their accounts X.
In Strasbourg, France, a group has been distributing stickers warning Musk that “stays away from the EU” during the weekend, a fire broke out in a parking lot in southern France, destroying multiple Tesla vehicles. Prosecutors declared that the incident “was not accidental at all.”
The decrease in demand is reflected in sales figures throughout Europe. According to PFA's car organization, Tesla's sales in France fell into more than 26 percent in February compared to last year.
In Norway, where the country is approaching its goal of eliminating combustion motor cars, Tesla sales fell almost half last month, despite a general increase in new car inscriptions. “The brand has had a single market position in Norway for several years,” said Oyvind Solberg Thorsen, director of the Norway Traffic Information Council. “It remains to be seen if this will continue, since there is a lot of agitation and noise that surrounds Tesla and Elon Musk.”
In other parts of Scandinavia, Tesla's sales fell 48 percent in Denmark and 42 percent in Sweden, even when general car markets in both countries saw growth.
On the contrary, in Great Britain, Tesla reduced the trend, with a 20 percent increase in February sales compared to last year, according to the Society of Motor and Merchants Manufacturers. Despite the growth, the Tesla market share still decreased by three percentage points, falling to 10.8 percent.
Some analysts suggest that part of the fall in sales may be due to customers waiting for the updated version of the model and, which will arrive in Europe at the end of this month. However, they point out that this factor is unlikely to explain the strong decrease.
Tesla's challenges extend beyond Europe. In China, the company's production fell by almost 50 percent in February. While Musk's political activities are not an important factor in China, Tesla faces a strong competition from national car manufacturers such as Byd and Xiaomi.
Musk has greatly avoided commenting on the decrease in car sales, instead of emphasizing Tesla's future in autonomous technology. He has promoted a planned “cybercab” that would be able to drive autonomous, telling investors last month that the company aims to launch an autonomous service in Austin, Texas, in June.
However, Tesla also faces a tough competition in the space without driver. Waymo, a subsidiary of the same parent company as Google, already operates taxi services without driver in multiple US cities, including Austin, Los Angeles, Phoenix and San Francisco, and is expanding to Atlanta and Miami.
Some Tesla investors are pressing for a greater responsibility for Musk, which urges him to change his focus on the company. Tulipshare, a shareholders defense group, plans to introduce a proposal at the next annual TESLA meeting that would link Musk's compensation with the performance of environmental, social and corporate government.
“It's time for Tesla investors to hold the company's leadership,” said the CEO of Tulipshare, Antoine Argouces.
(New York Times)