Elon Musk News - Tesla Sales Dropping in Europe - podcast episode cover

Elon Musk News - Tesla Sales Dropping in Europe

May 28, 20255 min
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Elon Musk News - Tesla Sales Dropping in Europe

Transcript

Tesla's sales in Europe dropped nearly 50% last month. But if Elon Musk continues to draw fire for political entanglements, will Tesla ever regain its standing with global consumers? So we're going to talk about Tesla's sharp fall of April 2025 European sales.

Today, we're going to explore the impact of Elon Musk's involvement with the Trump administration and how it affected Tesla. And we're going to talk about the outdated line up and factory shutdowns that are affecting performance and examine how buyer sentiment is shifting in the electric vehicle market right now. So Tesla only sold 7261 cars across 32 European countries in April of 2025, compared to 14,228 a year earlier.

That's a 49% drop. And it came even as the overall EV market in the region grew by 28%, according to European Automobile Manufacturers Association, or the ACEA. Now the contrast raises serious questions about why Tesla is shrinking while its competitors are growing. A protest against Elon Musk's are playing a key role.

In the last few months, demonstrators have shown up at Tesla dealerships in several European cities calling for boycotts in response to Musk's work with the Department of Government Efficiency, or DOGE, under President Donald Trump. Now, the group has been criticized for massive federal workforce cuts and several lawsuits, and activists are targeting Tesla because of Musk's deep financial ties to

the company. Now, Tesla's first quarter earnings missed Wall Street forecasts by a wide margin. The company's revenue dropped 9% and profit collapsed 71%. CEO Elon Musk blamed the numbers on a factory retooling process to update the Model Y, Tesla's top selling car. He said that factories were temporarily shut down to launch a refreshed version and added that the first quarter is the best time for such changes due to seasonally weaker demand. Now, April's sales suggest otherwise.

Tesla's sales fell dramatically in many countries, with Sweden, Denmark and the Netherlands posting the steepest declines. In some of these markets, Tesla sales dropped as much as 80% of this happened, while competitors, especially Chinese automakers, saw sales climb. SAICA, Chinese company that owns the MG brand, recorded a 54% increase in April sales. European buyers are increasingly drawn to M GS cheaper electric models, which are seen as more affordable and more frequently

updated than Tesla's offerings. Tesla's product lineup has barely changed in years, which is hurting its ability to compete with Chinese brands now. Tesla also had to shut down factories for several weeks this year to upgrade to the Model Y. While necessary, these shutdowns limited inventory during a time when demand was already cooling. Many buyers simply chose to look at other cars. European trade tensions with the US were also souring the market for American made vehicles.

Donald Trump's threats to impose a 50% tariff on EU goods have further damaged Tesla's appeal in Europe. Though the tariffs have been delayed until July, they've already added friction to Tesla's presence in a region where political relationships influence buying habits. And year to date, Tesla's European sales fell about 39%, totaling 61,320 vehicles in the first four months of 2025.

Over the same time period, the European car market remained flat, with battery electric sales rising and gas and diesel models declining. Tesla's drop stands out because it goes against the direction of the wider market. Now, Elon Musk insists that his political involvement is not affecting Tesla's brand. He questions how much buyers really care about CE OS political views, but organized protests and declining sales numbers suggest otherwise.

Musk's alliance with controversial political figures is becoming harder to ignore for many customers. Now. Tesla's fall matters for anyone watching the EV market. If you're in the market for a vehicle for an EV especially, they have more choices now. And many are selecting brands that offer not just good technology but also a sense of neutrality or values alignment.

Now, if Tesla and Elon Musk continue to lose trust of their customers and may not matter how good the cars are because people will buy a vehicle due to what Musk has done politically, the sales are falling for Tesla while other EV demands are growing. And these numbers suggest that Elon Musk's political image has done real damage to the Tesla brand.

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