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Tesla Sales Falling In The UK And European Markets, Many Say Musk Is To Blame

With Elon Musk becoming increasingly political in the U.S, Europe is abandoning Tesla

Tesla experienced a significant drop in sales across five major European countries in January 2024, including the United Kingdom and France. As new electric vehicle (EV) models from competitors gained traction, the company faced challenges, with several polls indicating growing dissatisfaction with CEO Elon Musk’s controversial behavior.

Musk’s increasing involvement in politics in the United States of America has drawn attention, particularly his financial backing of Donald Trump in the campaign for his 2024 presidential bid. Additionally, Musk has stirred controversy through his support for far-right parties in the UK and Germany, which he expressed on his social media platform, X.

Moreover, in January, Tesla’s sales in the UK dropped nearly 12 percent, even as the overall EV market in Europe saw record-breaking growth. Meanwhile, the company’s sales in France plummeted by 63 percent, with further declines of 44 percent in Sweden, 38 percent in Norway, and 42 percent in the Netherlands. 

Tesla Cybertruck

Even in Tesla’s home state of California, where the market for vehicles exceeds 1.7 million registrations, the company’s sales fell by 12 percent. 2024 marked Tesla’s first-ever annual decline in deliveries, although it remains the leading EV seller in the U.S. Musk has promised the release of affordable EV models in 2025, and the company is also investing in autonomous driving technology to regain its competitive edge. 

Despite these developments, Tesla’s position in the UK market took a hit, as it dropped from the No. 2 spot in January to No. 7, behind Volkswagen, Mercedes and Peugeot, companies that reported stronger sales.

A survey conducted by Electrifying.com in late January revealed that 59 percent of UK EV owners or prospective buyers said that Musk’s influence would discourage them from purchasing a Tesla. Furthermore, Musk’s comments about Germans not feeling guilt for the actions of past generations have fueled backlash, especially ahead of the February 2024 elections in Germany.

In Sweden, public opinion of Tesla has taken a hit, with a November survey showing a decline in positive views from 19 percent to just 11 percent. Negative perceptions surged, rising from 47 percent to 63 percent. As rivals, including Chinese EV makers, introduced new products, Tesla’s innovation pace slowed.

Despite these challenges, Tesla’s stock has continued to outperform the market, more than doubling in value over the past year. Currently, the stock holds a forward price-to-earnings ratio above 131, surpassing not only traditional automakers but also tech stocks, according to LSEG data

new rear design of the Tesla Model 3 post facelift

We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.

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