Tesla faces an uncertain beginning to 2025 as it previously dominated the electric vehicle market. Global sales statistics show substantial decreases, which indicate rising market competition together with changing customer preferences and Elon Musk’s involvement in politics.
The electric vehicle market in California showed a decline of 11.6% for Tesla during 2024, yet other manufacturers experienced increasing sales numbers. The Model 3 lost approximately 30,000 registrations as its previous year’s best-seller position declined significantly. The Cybertruck electric pickup from Tesla received only 9,019 registrations throughout the state.
The automotive market in Europe shows an especially dismal performance. Sales numbers from Tesla dropped by 60% in Germany and 63% in France during the first month of 2024. The UK experienced an 8% decrease in Tesla vehicle registrations despite reaching 21% EV sales penetration in the market. Tesla models failed to secure positions among the top 10 best-sellers in the country. January sales in China decreased by 11.5% for Tesla as production slowed down and local competition intensified within the market.
Multiple elements lead to Tesla’s declining performance. Volkswagen and BMW, together with Ford, have introduced new electric vehicle models that target market segments where Tesla currently lacks presence, including three-row SUVs. The termination of government EV subsidies in essential European markets caused EV demand to decrease.
Musk’s rising political controversies represent the most critical issue for Tesla’s future performance. The political support he offers to German far-right figures alongside his U.S. political involvement has driven away the progressive customer base, which traditionally purchased Teslas. According to the EV Politics Project’s latest report, Tesla’s political change under Elon Musk has caused its original customer base to turn away more quickly than new conservative customers are joining.
The upcoming Model Y refresh from Tesla will decide the future of the company. Any inability by the company to recover its lost market share will make Musk’s involvement more detrimental than external market dynamics.
