Tesla’s stock has dropped about 50% since mid-December’s peak. Initial optimism over a favorable regulatory climate and profits during Trump’s presidency has been dampened by concerns over a boycott of Musk’s vehicles and other issues. Analysts are unsure how much the sales decline is due to the protests or other factors.
In recent weeks, Tesla vehicles have been vandalised and ignited, prompting demonstrations at numerous Tesla dealerships. Some owners have affixed bumper stickers to their cars that read, “I bought this before Elon went crazy.”On Tuesday, Musk informed Tesla investors that he plans to reduce his involvement with the Department of Government Efficiency (DOGE) to one or two days per week, beginning next month. In response to the turbulence, Musk said:
“I think the right thing to do is fight the waste and fraud and try to get the country back on the right track,” adding “If the ship of America goes down, Tesla will go with it.”
Analysts remain uncertain about the extent to which the decline in sales can be attributed to the protests as opposed to other influencing factors…
IMAGE: Demonstrators hold anti-Tesla posters during a protest encouraging people to boycott Tesla in opposition to Tesla CEO Elon Musk’s political efforts outside the Tesla Centre Park Royal in London, Britain (Source: Chris J Ratcliffe/Reuters)
Le Figaro reports on electric car sales in Europe…
(Translated from French to English)
Tesla: Sales in the European Union continue to plummet in March
Penalised by the political stances of its boss, Elon Musk, the manufacturer saw its sales fall by 36% in March and almost halve in the first quarter.
Tesla’s sales in the European Union fell 36% in March compared to March 2024, and were almost halved for the entire first quarter.
Hampered by the reputation of its boss, Elon Musk and an aging lineup, the Tesla brand has seen its registrations in the European Union decline by a cumulative 45% since the beginning of the year. According to figures published Thursday by the Association of Manufacturers (ACEA), they fell to 36,167 vehicles compared to 65,774 in the first three months of 2024, the largest relative decline over the period among the major automakers. However, registrations of electric vehicles, the American brand’s speciality, increased overall by 17.1% year-on-year in March, now representing 15.2% of the market.
Vandalism, calls for boycotts, and protests—Tesla has been under fire in Europe and the United States since Elon Musk became close to Donald Trump, becoming a close advisor at the White House and spearheading a program of drastic federal spending cuts. Tesla warned Tuesday, as it published its results, that “changing political sensitivities could have a significant impact on demand for our products in the short term.”
Market stagnation
The manufacturer saw its revenue decline by 9% in the first quarter, to $19.3 billion. Electric car registrations increased significantly in March in Germany, Belgium, and Denmark, and are beginning to take off in Spain and Italy, which are lagging far behind their European neighbors. However, they declined in France (-14% compared to March 2024), with the effects of the reduction in the ecological bonus still being felt.
This progression of electric vehicles in the European Union is not enough for the automotive lobby, which points to a “persistent gap between ambitious decarbonization targets and the reality of slower-than-expected consumer adoption,” according to Sigrid de Vries, director general of ACEA, quoted in a press release. Meanwhile, hybrid models (with an electric motor and a battery that cannot be recharged) are increasingly taking over the European market: 35.5% of cars registered in the first quarter were hybrids, compared to 28.7% gasoline models. All energy sources combined, the automotive market stagnated in March (-0.2% year-on-year).
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