Elon Musk is no stranger to controversy, but it seems that his increasingly political moves are starting to hurt his bread-and-butter business: Tesla. While the billionaire’s antics might get him headlines, Tesla’s sales figures across Europe and beyond are telling a different story. In this article, we’ll take a closer look at the sharp sales drops Tesla is facing, the possible reasons behind them, and how Musk’s public persona might be a big factor.

Tesla Sales Take a Big Hit in Europe

It has long been a dominant player in the electric vehicle (EV) market, but recent sales figures are raising some eyebrows. In countries where the company once thrived, the numbers are plummeting. Take Germany, for example—the only European country with a factory. In January 2024, new Tesla sales dropped a staggering 60 percent. France wasn’t much better, with a 63 percent decline. Even Norway, a country often associated with high EV adoption, saw Tesla registrations fall by 38 percent.

In Sweden, the situation wasn’t much different, with only 405 new Teslas registered—a sharp 44 percent drop. While sales in the United States are also dipping, the decrease isn’t as steep. Meanwhile, the much-anticipated Cybertruck, which is only available in the US and Canada, has seen a 22 percent drop in sales between Q3 and Q4 of 2024, as its resale value continues to slide.

These issues are compounded by a significant dip in it’s overall performance. From 2023 to 2024, the company’s net income fell by 23 percent. From 2022 to 2024, that decline ballooned to an alarming 40 percent.

Tesla Stock in Freefall

It’s financial woes are also showing in the stock market. After an initial boost following Musk’s financial backing of Donald Trump during the 2020 election, the company’s stocks are now reeling. Over the past month, Tesla’s shares have dropped by over 16 percent, with nearly 13 percent of that decline happening in the past week alone.

Interestingly, even within Musk’s family, there’s growing concern. His brother, Kimbal Musk, recently sold off tens of millions of dollars in it shares, further signaling trouble within the company.

The Musk Factor: Is His Controversial Image Hurting Tesla?

So, why is it struggling so much? While some point to a dip in European EV subsidies, the bigger issue likely lies with Musk himself. His increasingly polarizing public persona seems to be dragging down Tesla’s image. Musk has been making headlines lately for his controversial political stances, including cozying up with far-right groups and even performing a fascist salute at a MAGA rally. He’s also been slammed for his Holocaust jokes and retweeting neo-Nazi accounts to his millions of followers.

These actions are undoubtedly taking a toll on it’s favorability rating, which has plummeted to a shocking 3 percent—the lowest since financial services company Stifle began polling in 2018.

The Conflict Between Musk’s Ventures and Tesla’s Future

Musk’s growing political power and influence seem to be creating a significant conflict of interest for it. One of the most glaring contradictions is his leadership of DOGE, a group that is pushing for federal budget cuts and government employee investigations. This goes against the interests of Tesla, which has long benefited from government handouts and incentives.

Tesla, in particular, relies heavily on selling regulatory credits—estimated to account for up to 43 percent of its revenue. These credits are a major part of it’s financial strategy, and with the Trump administration working to eliminate them, it could spell disaster for the company.

What’s Next for Tesla and Elon Musk?

Despite all these issues, it’s still too early to declare it’s downfall. The company is still worth nearly $400 billion, and Musk’s influence is far-reaching. However, the rising criticism and financial troubles are hard to ignore. It is facing a massive uphill battle, and the growing public backlash against Musk could be more damaging than anyone anticipated.

While some might find satisfaction in seeing even the world’s richest person face the consequences of his actions, it’s clear that Musk and Tesla are in for some tough times ahead. For now, it’s a waiting game to see if the tech mogul can weather this storm or if it’s the beginning of the end for Tesla’s dominance in the EV world.