Tesla sales in Europe are sliding. That's a problem for Elon Musk.

Tesla's Sales Performance in Europe - Tesla's EV sales in the European Union dropped by 13% in 2024, with significant declines in major markets like Germany (41%), France, and Italy [1][2] - The overall battery EV market in Europe also declined by 27% in 2024, driven by the end of key subsidies in several markets [2] - Tesla's sales in some markets such as Belgium, Netherlands, and Sweden rose, but the overall picture in Europe remains challenging [4] Competitive Landscape - Rivals like Volvo, Renault, and BMW saw their EV sales grow in Europe, with Volvo's sales rising nearly 30% due to the popularity of its EX30 electric crossover [4][5] - Tesla's product lineup in Europe has become stale, with no new vehicle launches since the Model Y in 2021, and the Cybertruck not available in the region [6] - The European EV market is becoming more crowded, with pressure from domestic rivals and Chinese carmakers [6] Impact of Elon Musk's Political Involvement - Elon Musk's political interventions, including his endorsement of Germany's right-wing AfD party, have caused controversy and led some German companies to stop buying Tesla vehicles [10][11] - Tesla's rivals, such as Polestar, are targeting disgruntled Tesla owners who are put off by Musk's political activities [11][12] - Analysts expect Musk's political involvements to eventually impact Tesla's European sales, benefiting rivals [12][13] Future Outlook - The recently unveiled revamped Model Y is seen as key to turning around Tesla's fortunes in Europe, with deliveries starting later this year [7] - Despite political controversies, consumers are expected to prioritize factors like price and performance over Musk's politics [14][15]