Tesla, Inc. is having a rollercoaster of a year in America, leaving investors unsure about the road ahead. The U.S. isn't the only market that the American electric vehicle manufacturer is struggling in.
The company's new car sales plunged to their lowest in over two years in Britain and Germany, Reuters reported May 6. Sales dropped 62% and 46% year-over-year respectively, despite demand for EVs increasing in both countries, according to Reuters.
Tesla shares were down 2.66% as of noon May 6 in the wake of reports detailing the drop in sales. The company's share price fell by 41.50% from $379.28 on January 2 to a yearly low of $221.86 on April 8. Tesla's share price has been ravaged by increased competition in the EV space and reactions to Elon Musk's political activities as Senior Advisor to the President of the United States.
Here's what to know.
Is Europe turning on Tesla?
Earlier this year, The Guardian reported that EV sales in Great Britain have increased because of rules forcing automakers to sell more every year to cut carbon dioxide emissions, hitting an sales record in 2024.
Stellar European Tesla sales were a byproduct of the global push for the auto industry to go green, until now. It's no secret that Americans are beginning to turn their back on Tesla vehicles and the company's eccentric CEO, Elon Musk. Have the same negative sentiments become a pandemic of sorts, transforming global perceptions of the brand?
Tesla sales fell to multi-year lows in several other European markets, including Sweden (80%) and the Netherlands (74%), even as the company launches the redesigned Model Y, according to Reuters.
Why Tesla sales may be falling in Europe
"This could partly be attributed to political tensions tied to Elon Musk's divisive role in the Trump administration and advocacy for right-wing European parties," Business Insider reported May 5, citing the "Tesla Takedown" movement that emerged in response to Musk's government role and his comments on European politics.
The public's growing outrage at the actions of Musk and the current American administration is well-documented.
On the other hand, the political escapades on Tesla's CEO are only half of the equation. The American automaker experienced plenty of success early on in European markets, but it's far from the only player.