Thursday, December 19, 2024

Tesla sales crash as drivers snub Trump supporter Elon Musk

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Tesla boss Elon Musk’s support for Donald Trump has alienated some of the company’s customer base – Alex Brandon/AP

Tesla’s sales in Europe have plunged by 40pc as the electric carmaker battles a backlash from buyers against Elon Musk’s support for Donald Trump.

The company saw its sales across the European Union tumble to 18,786 in November, down from 31,810 a year earlier.

Only three brands endured a worse performance over the period, including Smart and Stellantis-owned Fiat and Chrysler.

Overall, Tesla’s sales through January to November this year are down by 15pc compared with 2023.

It came amid a wider 10pc drop in electric car sales across the EU, with sales in France and Germany dropping by 24pc and 22pc respectively.

Petrol car sales also fell by 7.8pc but sales of hybrids – excluding plug-ins – rose 18.5pc. Hybrids also overtook petrol in market share, rising to 33.2pc of sales.

Analysts have partially blamed Tesla’s malaise on new 7pc tariffs levied by the EU on Chinese-made cars that the company ships to the Continent, as well as price cuts that temporarily boosted the company’s sales last year.

But they also pointed to the company’s ageing lineup of vehicles and the likelihood that some customers are shunning the brand because of Mr Musk’s backing of Mr Trump, the US president-elect.

The billionaire threw his weight behind the Republican candidate in a fundraising and campaigning blitz ahead of the US presidential election in November. He has since become one of Mr Trump’s leading advisers.

This and other factors may be to blame for Tesla’s waning sales in Europe, said Felipe Munoz, an automotive analyst at Jato Dynamics.

Mr Munoz said: “I would not blame this all on tariffs. Not all the cars sold by Tesla in Europe are Chinese-made.

“Another reason for the drop is because last year we saw big volumes sold due to the price cuts, so the effect is not as strong this year. There is also more competition and the overall demand for EVs [electric vehicles] is cooling.

“Musk going into politics has had an effect, but I don’t think it will stay for long.

“By contrast, the product’s age can have an impact. The Model Y is aged now and it is waiting for the updated version next year. You usually see big drops in car sales when this happens.”

Mr Musk – who has voted Democrat in the past – has faced a backlash from liberal-leaning customers in the US for his support of the Republican Party.

Some have put stickers reading “Anti-Elon Tesla Club” or “I Bought This Before Elon Went Crazy” on their cars.

In Europe too, some customers have baulked at the billionaire’s increasingly political profile.

German pharmaceutical chain Rossman said in August that it would halt purchases of Teslas for its company fleet, because of the “incompatibility” between Mr Trump’s policies and Tesla’s pro-environment goals.

However, Rossman only owns a fleet of about 800 cars, of which around 30 are Teslas.

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