In recent months, Tesla, once a darling of the electric vehicle (EV) market in Europe, has witnessed a dramatic decline in its sales figures across several key marketsReports indicate a staggering drop of 63% in new vehicle registrations in France, which is recognized as the second largest market for electric vehicles within the European UnionIn January alone, Tesla sold just 1,141 new vehicles in France, reaching its lowest level since August of 2022. This downturn isn't isolated to France; similar trends have been observed in Norway and Sweden, where Tesla's new car registrations fell 38% and 44% respectively, further compounding its struggles in the region.

Several commentators and analysts have started drawing correlations between this plummeting demand and the fluctuating popularity of Tesla's CEO, Elon MuskHis escalating involvement in European politics over the past months, frequently utilizing his social media platforms to criticize and attack various European leaders, has sparked a wave of negative sentiment towards both him and the brand

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Such actions have not only affected public opinion but have also led to a palpable decline in trust in Tesla as a brand, particularly among increasingly aware European consumers.

Notably, this slump in sales has not been confined to European shoresIn California, which is the largest electric vehicle market in the United States, Tesla is feeling the pinch as wellAccording to recent reports from Bloomberg, new car registrations for Tesla in California have seen a decline through all four quarters of 2024. Specifically, registrations of the Model 3, one of Tesla’s flagship cars, dropped by 36% over the year, indicating a worrying pattern for the electric vehicle manufacturer.

In the broader context, data published by the French automotive industry association La Plateforme Automobile reflects that in January, while electric vehicle sales in the overall French automotive market decreased only slightly by 0.5%, Tesla’s performance was glaringly poor

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The overall automotive market in France has faced a 6.2% decline yet Tesla's numbers starkly contrast, pointing towards a growing disconnect between the brand and its consumer base.

Furthermore, significant drops in market share have been noted in both Norway and Sweden, particularly following Musk's polarizing public statementsIn Sweden, where Tesla managed to register just 405 new cars in January, the market share fell dramatically compared to last year's figuresIn Norway, where optimism around the economy has translated to an impressive 82% rise in overall car registrations, Tesla still lagged substantially, demonstrating that the brand is losing its foothold in a market that was, not long ago, extremely favorable towards electric vehicles.

Despite the prevailing negative sentiments surrounding the brand, Tesla's Model Y remains the top-selling car in Sweden and Norway for 2024. Nonetheless, a recent market sentiment survey conducted by Sweden's Novus Group indicates that Tesla’s image is deteriorating, as public dissatisfaction grows

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Public confidence in Tesla diminished significantly following Musk's controversial political remarks, fostering a viewpoint in which consumers feel less inclined to support the brand.

The ramifications extend even further with additional reports indicating an 18% decline in Tesla’s sales in the United Kingdom and decreases of 31% in Portugal, and approximately 40% in both Denmark and the NetherlandsSpain saw the most drastic fall at a staggering 75%. The underlying narrative here points towards a broader trend of dissatisfaction tied to Musk's vocal support for controversial political figures and movements across Europe, directly influencing how potential customers perceive the brand.

Moreover, Musk's continued support of former U.SPresident Donald Trump has not gone unnoticedThis controversial alignment has led to backlash from various European leaders, including the Prime Minister of Norway, who openly criticized Musk’s engagement in European politics

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Recent surveys from Novus revealed that positive opinions on Tesla among Swedish citizens have plummeted to just 11%, reflecting an overwhelming sentiment that Musk should remain uninvolved in local political matters.

This sentiment isn’t confined to just a couple of countries; the data is emblematic of a larger shift in consumer attitudes fueled by Musk's political engagements and misstepsWhile Tesla had previously dominated the EV market, the signs are increasingly evident that it faces a uphill battle in regaining consumer loyalty.

As part of this shift, Tesla's predicament can also be illustrated through its recent struggles in the German market, where sales reportedly fell 41% amidst a general decline of 27% in overall EV salesAnalysts cite the aging lineup of Tesla vehicles, coupled with intensified competition and the phased-out government subsidies as contributing factors to their fall from grace in Germany.

Turning our focus to its performance in California—the nation’s heart of electric vehicle sales—Tesla registered consistent declines throughout 2024. The California New Car Dealers Association indicated a nearly 8% decline in Q4 and a 12% drop over the year as a whole

With Model 3 registrations falling by over a third, Tesla's once-secured status appears increasingly vulnerable.

Despite the introduction of the much-anticipated Cybertruck, which has created divided opinions among the consumer base, Tesla’s overall registration trends remain downcastThe involvement of Musk, whose active presence has become more contentious, may also be part of the reason for the decline in businessWhile some competitors like Honda and Hyundai have managed to capitalize on Tesla’s downturn by gaining market share, the electric vehicle manufacturer’s reputation continues to falter.

Ultimately, the situation is amplified by the fact that Elon Musk has increasingly become a polarizing figure, especially following the relocation of Tesla's headquarters to Texas in 2021, a move which was largely seen as a direct response to California's COVID-19 restrictions and an indicator of Musk's shifting priorities