Tesla's German Sales Plummet 76%, And Analysts Are Blaming Musk's Political Stance For It

Tesla, whose stock price has been declining recently, has encountered more bad news. The company's sales in the German market last month plummeted by more than three-quarters, which may be related to its CEO Elon Musk's frequent comments on European politics.

Data released by the German Federal Motor Transport Authority on Tuesday showed that Tesla's sales in February plummeted by 76%, with only 1,429 new cars sold. In contrast, the overall electric vehicle market in Germany performed strongly, with registrations increasing by 30.8% year-on-year to 35,949 vehicles in the same month.

After the U.S. presidential election, Tesla's stock price surged to a record high, as Musk made significant contributions to Trump's victory, thereby earning his trust.

However, since the beginning of this year, Tesla's stock price has fallen by about one-third.

In the first two months of this year, Tesla's sales in Germany and France fell by 71% and 44%, respectively. These two countries are the largest electric vehicle markets in the European Union.

In contrast, Tesla's performance in the UK market has been relatively strong. The UK replaced Germany as Europe's largest electric vehicle market last year, and Tesla's registrations in the UK increased by 11% in the first two months of this year, mainly due to strong growth in February.

However, Tesla's overall performance in the European market is not optimistic. Data released last week showed that Tesla's sales in Europe in January this year fell sharply, down 45% compared to the same period last year.

Part of the reason behind Tesla's sales decline may be related to Musk's repeated involvement in European politics. Since December last year, Musk has frequently publicly supported far-right forces in Europe on the social media platform X, such as the German Alternative for Germany (AfD) party, which has sparked local resentment and even led to protests and sporadic acts of sabotage.

In addition to Musk's political remarks, Tesla's weak performance at the beginning of the year has also been affected by other factors.

Tesla is suspending production at some factories to adjust the production line for the Model Y. The Model Y is Tesla's best-selling model, but the production adjustment will lead to a short-term decline in output. The model has undergone its first facelift since its launch five years ago, and it will take time to resume production.

Furthermore, Tesla is facing challenges from local competitors and Chinese automakers. At the beginning of this year, BYD surpassed Tesla in sales in several European markets.