London — Tesla’s stock tumbled 9% Monday after European sales collapsed by nearly 50% in January, with analysts blaming intensifying competition and CEO Elon Musk’s polarizing political antics. The drop dragged the electric car giant’s valuation below $1 trillion for the first time since November 2024.
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Tesla’s European sales plummeted 45% in January as Chinese rivals like BYD surged—and CEO Elon Musk’s far-right political alliances may be turning off buyers. Shares fell 9% Monday, reigniting concerns about the company’s future in its second-largest market. Here’s why Tesla’s dominance is slipping.
Key Takeaways:
- EU/UK Sales: Dropped 45% in January vs. a 33% industry growth.
- Musk’s Politics: Analysts cite backlash over his far-right endorsements.
- Valuation: Fell below $1 trillion for the first time since 2024.
Tesla’s European Struggles
- 2023: Sales fell for the first time in a decade as rivals gained ground.
- BYD’s Rise: Chinese EV maker now leads Europe with 20% market share.
- Musk’s Controversies:
- Supported jailed UK far-right activist Tommy Robinson.
- Backed Germany’s far-right AfD party.
- Called himself Trump’s “first buddy” post-US election.
Industry Trends
- European EV sales grew 33% YoY in January, driven by affordability and government incentives.
- Tesla’s premium pricing and Musk’s antics clash with eco-conscious buyers.
Competition Bites
- BYD’s Edge: Includes features like solar roofs and bidirectional charging as standard, while Tesla charges extra.
- Price War: BYD’s $35,000 sedan undercuts Tesla’s $45,000 Model 3.
Musk’s “Toxic” Factor
- Analyst Russ Mould: “Buyers may be taking a principled stand against Musk’s politics.”
- Former Exec Peter Bardenfleth-Hansen: “His chainsaw stunts aren’t helping sales—they’re alienating core customers.”
Data-Driven Breakdown
- EU Sales: Dropped 50% YoY in January (Source: ACEA).
- Market Share: Tesla fell to 12% from 18% in 2023.
- BYD’s Surge: Sales up 150% YoY, capturing 20% of the EU EV market.
Visual: Tesla vs. BYD Sales Trends
Future Outlook
- Tesla’s Response: May cut prices or add features to compete.
- Expert Predictions:
- Mould: “Tesla needs to innovate, not just rely on brand loyalty.”
- Bardenfleth-Hansen: “Musk’s politics are a distraction—focus on the cars.”
- Market Risks: Interest rate hikes and Trump’s anti-EV policies could worsen Tesla’s woes.
Conclusion
Tesla’s European decline highlights a dual threat: fierce competition and a CEO whose politics are overshadowing the product. As BYD and others dominate, can Musk pivot—or will Tesla’s EV crown slip further? Share your thoughts below: Is Tesla’s future in Europe doomed, or can it rebound?
Final Thought:
In a market hungry for affordable EVs, can Tesla’s premium strategy survive Musk’s controversies?
