Tesla sold fewer than expected cars in Europe last month, with sales dropping by nearly half compared to the same period last year, according to industry data.
The company’s reputation has taken a hit due to CEO Elon Musk’s inflammatory comments and involvement in politics. In Germany, Musk publicly endorsed the far-right AfD party, while in the US, he advised President Donald Trump on slashing federal agencies. This move sparked protests at Tesla dealerships across Europe.
Tesla launched an upgraded Model Y this year but lacks new mass-market offerings. The company faces increasing competition from traditional automakers and aggressive Chinese players like BYD, which recently surpassed Tesla in European pure electric car sales for the first time.
European consumers are increasingly opting for hybrid electric vehicles, with over 35% of the market choosing these cars. However, Tesla only offers full battery-powered vehicles, leaving a gap in the market.
Investors have questioned Musk’s commitment to Tesla due to his dual roles as CEO and advisor to Trump. Despite this, Musk remains committed to leading the company for the next five years.
Source: https://www.cnbc.com/2025/05/27/tesla-europe-sales-plunge-49percent-as-elon-musk-brand-fallout-continues.html