By David Swan
Sales of Elon Musk’s electric vehicle maker Tesla are plummeting across Australia and Europe amid the billionaire’s increasing involvement in global politics and rising competition from China.
Tesla posted lower sales than its competitors across several European countries in January, including the United Kingdom, Germany and France, with polls showing public opinion souring on Musk.
Musk, the world’s richest man, has made a high-profile foray into politics with his support of Donald Trump. The billionaire CEO pumped $US250 million ($400 million) into Trump’s successful campaign to return to the White House last year, and has since seized power in an unprecedented government cost-cutting drive as Trump’s special government employee.
He also stirred international controversy with his support for far-right parties in Britain and Germany on his social media platform X.
Musk has made a high-profile foray into politics. Is it hurting Tesla sales?Credit: AP
Tesla’s UK sales plunged nearly 12 per cent in January, even as monthly EV registrations in Europe’s biggest battery-electric market surged to a record, according to data published by New AutoMotive on Tuesday. That follows a 63 per cent decline in January sales for Tesla in France, a 59 per cent fall in Germany, drops of 44 per cent and 38 per cent in Sweden and Norway, and a 42 per cent fall in the Netherlands.
At home in the US, Tesla sales fell by 12 per cent in California, America’s largest car market with more than 1.7 million vehicle registrations in 2024. Musk and Tesla left California for Texas in late 2024.
Tesla sales are also plummeting in Australia. Figures released by the Electric Vehicle Council this week showed local Tesla sales fell by a third year-on-year, with 739 Teslas sold in January 2025 compared to 1107 a year earlier. That’s the fewest Teslas sold here since July 2022, when a COVID shutdown saw just four sales recorded.
Tesla’s Model 3 is struggling in particular. It was the second-best selling electric car in Australia last year, but posted a 62 per cent drop year-on-year, with 274 sales in January compared to 723 a year earlier.
Its Model Y fared better, with sales up 21 per cent year-on-year to 465 in January 2025.
In 2024, Tesla posted its first-ever annual decline in deliveries, though it is still the leading EV seller in the United States. Musk said he would soon launch long-awaited cheaper electric cars, and the company has increased its focus on autonomous driving technologies.
The company accounted for 42 per cent of all Australian electric vehicle sales in 2024, but is fighting increased competition from cheaper Chinese models from the likes of MG and BYD, as well as lesser-known brands like Chery.
Tesla’s Model 3 is struggling in particular.
Tesla did not immediately respond to a request for comment on its sales.
In Australia, bumper stickers have begun popping up on some Tesla’s vehicles with owners proclaiming they “bought it before we knew how awful Elon is”.
A late January survey conducted by EV review website Electrifying.com showed that 59 per cent of British owners of electric cars, and those intending to buy such a vehicle, said Musk’s influence would deter them from buying a Tesla.
“Musk’s influence on the brand is becoming increasingly polarising, pushing many buyers to look elsewhere,” said Electrifying.com chief executive Ginny Buckley.
“Competition has never been fiercer, and Tesla is already feeling the pressure.”
Prime Minister Anthony Albanese this month pre-emptively warned Musk not to get involved in the upcoming federal election, noting that Australia has anti-foreign interference laws.
Asked in an interview with this masthead about Musk’s interventions, Albanese said his job was to focus on Australia’s national interest.
“We have foreign interference laws in this country and Australian elections are a matter for Australians,” Albanese said. “I have no intention of being a ... commentator on what people overseas want to engage in. People will make their own judgments and have their own views about that.”
European politicians have also pushed back against Musk’s recent comments, which include the amplification of far-right commentators on X. Some accounts have quit the platform, citing the spread of misinformation.
Musk has dismissed criticism against him as an affront to democracy and free speech. The Tesla chief executive has become a vocal supporter of the far-right Alternative for Germany (AfD) ahead of February elections.
He recently told an AfD rally just before the 80th anniversary of the liberation of the Auschwitz concentration camp that Germans should not feel guilt for the sins of their great-grandparents.
Tech billionaire Elon Musk speaks live via a video transmission during the election campaign launch rally of the far-right Alternative for Germany (AfD).Credit: Getty Images
However, Ben Nelmes, who runs research group New AutoMotive, believes Tesla’s problems stem less from Musk’s actions and more from its failure to launch a new mainstream model since the Model Y in 2020, while rivals, including Chinese EV makers, have fresher products on the market.
“It’s not due to Musk’s views or British motorists’ views about Musk – [Tesla] stopped innovating after the Model Y,” he told Reuters.
Despite these factors, the company’s stock has continued to outperform the market, with its share price more than doubling over the past year.
With Reuters
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