The Impact of Musk's Risks A Threat to Tesla Sales in the European Union

The Impact of Musk's Risks A Threat to Tesla Sales in the European Union

Elon Musk's recent actions have sparked concerns among buyers in the European Union, potentially driving them away from Tesla. The electric pioneer's cars saw sales halve year-on-year in January 2025 in both Germany and France.

Musk's support for US President Donald Trump, his backing of European far-right parties, and attacks on diversity policies have raised eyebrows. German automotive industry expert Ferdinand Dudenhoeffer emphasized that Nobody wants to be associated with Musk's behavior. The brand and its boss are almost inseparable, making it challenging for buyers to separate the company from its controversial leader.

Germany A Sensitive Market

In Germany, where the Nazi past remains a sensitive subject, Musk's backing of the far-right AfD party has been particularly toxic. Stickers bearing the message I bought this car before Elon went crazy started appearing on German Tesla cars, mirroring similar incidents in the United States.

Musk's gesture at a Trump rally, which critics likened to a Nazi salute, drew widespread condemnation. Activists projected a giant image of Musk's gesture and the word Heil onto the outside of a Tesla plant near Berlin, highlighting the brand's association with its controversial leader.

Environmental Concerns

German automotive analyst Matthias Schmidt highlighted that environmental concerns motivate many Tesla consumers. However, Musk's political rhetoric is potentially toxic in Germany, where buyers are motivated by more than just the car's performance.

Boycotts and Backlash

The backlash has been significant. A young French doctor, Adriaan, who bought his Tesla second-hand, expressed concern about giving money to a person he deemed scary. Other incidents targeting the Tesla brand or its owner have taken place outside Germany.

In the Netherlands, a Tesla showroom was vandalized with swastika graffiti and anti-fascist slogans. In Poland, Tourism Minister Slawomir Nitras hinted at a possible boycott in response to Musk's actions.

The Impact on Sales

While it is difficult to measure the impact of these boycotts on sales, they will undoubtedly contribute to Tesla's challenges in the European Union. The brand's range of vehicles is aging, and the market is overcrowded with competing models.

Global Sales Remain Stable

Despite the challenges, Tesla's global sales remained stable last year, and company shares climbed to a record high since Trump's election.

Two Sides of the Same Coin

Ieva Englund of Swedish institute Novus, which conducted an online survey at the end of January, noted that half of the Swedish population is either positive or neutral toward the brand. Men ages between 35 and 49 years old, considered Tesla's main target group, remain relatively positive.

However, the deadlock around Swedish Tesla employees who have been on strike for more than a year demanding better wages and work conditions, as well as Musk's recent actions make everyone else see red, Englund said.

Conclusion

The impact of Musk's risks is likely to put European Union buyers off Tesla. The backlash has been significant, with concerns about the brand's association with its controversial leader. As the market continues to evolve, it remains to be seen how this will affect Tesla's sales in the long run.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.