Elon Musk's massive wealth drop signals Tesla's sales struggles in Europe
- In January 2025, Tesla's sales in Europe dropped by 45% year-on-year, coinciding with increased anti-Musk sentiment among buyers.
- This decline in sales has significantly affected Tesla's stock price, leading to a market capitalization loss under $1 trillion.
- Analysts suggest that Musk's political involvement and subsequent public perception may pose long-term challenges for Tesla's sales and market positioning.
In Europe, a significant decline in sales for Tesla has been observed, with a startling 45% drop year-on-year in January 2025 compared to January 2024. The company sold fewer than 10,000 vehicles, contributing to widespread concern among investors regarding the brand's future. This trend has coincided with rising dissatisfaction toward Elon Musk, who has garnered a controversial political reputation, particularly due to his association with President Donald Trump. Consumer sentiment appears to be shifting, with many exploring alternatives to Tesla amid a burgeoning market for electric vehicles (EVs) from various manufacturers. This has placed additional pressure on Tesla's stock performance, which has already seen a decline in value since December 2024. Musk's controversial activities, alongside widespread anti-Tesla sentiments in Europe, have compounded the company's struggles, leading to a loss of market share and a plummet in stock valuation. Investors remain cautious, with projections indicating a potentially challenging year ahead for Tesla as they grapple with intensifying competition and Musk's polarizing public image. Despite these difficulties, analysts maintain that Tesla's extensive plans for future developments and autonomous vehicles may offer some hope for recovery in the long term.