In January, Tesla’s new car registrations in France, the EU’s second-largest electric vehicle market, were only 1,141—a 63% year-on-year drop. Sales in Sweden and Norway also plummeted. In January, Tesla registered 405 new cars in Sweden—a 44% drop from the same period last year—while registrations in Norway fell 38% year-on-year to 689.
Some reports suggest that Tesla’s declining sales are tied to CEO Elon Musk’s diminishing popularity in Europe. In recent months, Musk has openly intervened in local politics, using his social media platform to criticize European leaders.
Notably, Tesla’s sales in California, the largest electric vehicle market in the U.S., have also continued to decline. France, the EU’s second-largest battery manufacturer, has seen Tesla perform significantly worse than the overall EV market. In contrast, car registrations in Sweden rose 14% year-on-year in January, while Norway’s market surged 82%, driven by rising economic optimism.
Market Sentiment and Political Impact
Despite Tesla’s Model Y being the best-selling car in Sweden and Norway in 2024, a market sentiment survey by Sweden’s Novus Group found that the company’s image has recently suffered. Consumers have increasingly expressed negative feedback about the brand, partly due to Musk’s controversial political views in Europe.
After Trump took office, a Novus survey found that only 11% of Swedes held a positive view of Tesla. Some media outlets have attributed Tesla’s sales decline to Musk’s political involvement. He has used his social media platform to criticize European leaders—including the British prime minister and Irish regulators—while also expressing support for Germany’s far-right Alternative for Germany party and forming close ties with Italy’s right-wing prime minister.
Declining Market Share
Tesla’s sales in Europe were already declining before the latest data was released. In 2024, the company’s EV sales in the EU dropped by 13%. Reports indicate that Musk, 53, spent at least $288 million supporting Trump and other Republican candidates in the 2024 U.S. presidential election.
Despite this, Tesla still holds the largest share of California’s zero-emission vehicle market, though its market share has declined from 60.1% in 2023 to 52.5%. Honda and Hyundai emerged as the biggest winners in California’s EV market, increasing their market share by 1.8% and 1.5%, respectively. Tesla’s dominance in the EV market continues to weaken, marking its fifth consecutive quarter of declining registrations.
Relocation and Future Risks
In July 2023, Musk announced that his social media company, X, and aerospace company, SpaceX, would also relocate from California to Texas. He cited a new California law signed by Governor Gavin Newsom, which prohibits schools from requiring teachers to notify parents of students’ gender identity changes—a policy that Musk opposed.
Analysts warn that if Trump follows through on his campaign promise to eliminate the federal EV tax credit, Tesla’s sales could take another hit.
