The impact of Elon Musk’s high profile political activities on Tesla sales in the UK - its second biggest European market - will be revealed next week as the value of the electric car maker falls below $1 trillion.
The Society of Motor Manufacturers and Traders (SMMT) will unveil marque by marque figures for January and February on Wednesday.
The billionaire has made frequent interventions into UK politics over recent months including expressing support for jailed far-right activist Stephen Yaxley-Lennon, also known as Tommy Robinson. He also been highly critical of Keir Starmer, accusing him of covering up the grooming gangs scandal.
Tesla’s Model Y was the 5th best selling car in the UK last year with 32,862 registrations but a consumer backlash could send sales tumbling this year. Figures last month from the SMMT show Tesla sales were down 8% in January but next week’s data could show a far bigger fall for February.
But figures yesterday from the European motor trade body revealed that Tesla sales slumped by almost half in January.
The Texas-based carmaker sold 9,945 vehicles in Europe in the month, down 45% from last year’s 18,161, according to data from the European Automobile Manufacturers’ Association (ACEA). Tesla’s share of the market dropped to 1% from 1.8% in a month when images of Musk performing a fascist-style salute went viral.
Musk has been particularly outspoken in his support for Germany’s far right AfD party which secured almost 20% of the vote in German elections last week.
Shares in Tesla fell more than 8% in trading on the New York Stock Exchange last night, resulting in its ejection form the elite “trillion dollar club” of company’s valued in 13 figures.
Tesla shares surged in November 2024, in response to Donald Trump's victory, reaching $463 by mid-December. But since then, it has begun to fall and over the past month, the stock has lost almost a quarter of its value
Investors were alarmed by the European sales figures but unsettled more generally about Musk’s growing daily involvement in the Trump administration. He is “in charge” of the newly created Department of Government Efficiency (DOGE) dedicated to cutting waste across federal agencies. He also runs the social media platform X and the space exploration company SpaceX.
Investment bank Saxo’s Global Head of Investment Strategy, Jacob Falkencrone, said: “Several key factors are weighing on Tesla’s stock, and none of them are minor hiccups. Tesla’s sales in Europe collapsed by 45% in January, even as the overall EV market in the region surged by 37%. In Germany and France, sales fell by a staggering 60% to 63%.
“ In China, its second-largest market, sales dropped 15% year-over-year. Meanwhile, competitors like Volkswagen and BYD are rapidly gaining ground. Tesla is no longer the only game in town.
“Elon Musk has always been one of Tesla’s greatest assets – but is he starting to turn into a liability? His increasingly vocal political stances and erratic behavior have alienated some traditional buyers. In Europe in particular, his favorability ratings are steeply declining, and investors are asking whether Musk’s personal brand is starting to weigh on Tesla’s business.”
