Tesla’s sales in Europe have fallen sharply this year, and recent data suggest the cause is less about new vehicle models and more about CEO Elon Musk’s controversial public behavior.
Sharp Sales Decline Confirmed by Industry Data
According to figures from the European Automobile Manufacturers’ Association (ACEA), Tesla’s sales in the EU dropped 52.6% in April compared to the previous year, and 49% when including the UK and the European Free Trade Association (EFTA) countries. For the January-to-April period, sales are down 46.1% in the EU and 38.8% in the combined EU+UK+EFTA region.
This is especially notable considering the broader market: battery electric vehicle sales across Europe rose by 34.1% in April within the EU, or 27.8% including the UK and EFTA nations.
In April, Tesla sold just 7,261 vehicles in these regions—less than half of the 14,228 units sold in April 2024. For the first time, Chinese automaker BYD outsold Tesla in Europe during this month.
Model Y Refresh Not the Primary Factor
Tesla’s refreshed Model Y has been available in Europe since January, so it’s unlikely to be the main reason for the dramatic sales drop. Instead, industry observers point to a growing backlash against Musk’s conduct.
Beyond Tesla’s core products, Elon Musk has stirred controversy with his political and social media behavior. He has openly supported Germany’s far-right AfD party, proposed a poll about “liberating” the UK from its government, and posted — then deleted — comments absolving Hitler and other dictators of genocide. These actions appear to be alienating a significant segment of potential customers in Europe.
What The Author Thinks
The Tesla case underscores an important lesson for corporate leaders: personal behavior and public statements of a CEO can have a substantial impact on consumer confidence and brand reputation. In a socially conscious market like Europe, customers increasingly hold brands accountable not just for products, but for the values their leaders embody. Musk’s controversies are not peripheral; they’re directly affecting Tesla’s sales and competitive position.
