Summary
- Tesla sales plummeted 63 percent in France in January 2025
- Elon Musk’s involvement in European politics may be affecting Tesla sales in the region
- Tesla registrations in European countries fell by 13 percent last year, with Germany being a significant factor
- European automakers are criticizing the 2025 emissions targets, fearing billions in costs
- Tesla’s reputation has taken a hit in the US, with declining market shares and trust ratings
Article
The article highlights the decline in Tesla sales in various regions, such as France and California. In France, Tesla sales plummeted 63 percent in January 2025, with only 1,141 Teslas sold out of 19,924 battery electric cars. This decline is attributed to Elon Musk’s involvement in European politics, which has potentially affected consumer demand for Tesla vehicles. In addition, Tesla registrations in European countries fell 13 percent last year, with Germany experiencing a significant decline in Tesla sales due to factors such as competition and the withdrawal of government subsidies.
Furthermore, the article discusses the pushback from European government ministers against the EU regulation on CO2 emissions from passenger cars. There are concerns that the regulation could result in billions of euros going to Chinese manufacturers and Tesla, leading to calls for a halt in implementing the regulations. European automakers are also worried about the cost of complying with emissions targets and have requested a regulatory pause to reassess the impact on the industry. The ministers propose extending the timeline for meeting emissions targets to around 2030 to provide relief to carmakers.
In the US, specifically in California, Tesla sales declined in all four quarters of 2024, with the Model 3 sedan experiencing a 36 percent decrease in sales for the year. Despite adding the Cybertruck to its lineup, Tesla faced challenges in California due to factors like changing over the Model 3 sedan and Elon Musk’s active role in the US election process. This led to a decrease in Tesla’s market share in California, with other automakers like Honda and Hyundai gaining share in the EV segment.
The article also touches upon the reputation hit suffered by Tesla among some US consumers, with survey scores indicating a decline in trust and likability sentiment towards the company. Despite selling the most zero emissions vehicles in California last year, Tesla’s market share decreased. Elon Musk’s criticism of California’s regulations and the subsequent move of Tesla and SpaceX headquarters to Texas have also raised questions about his priorities in the car business. This shift in focus towards other endeavors like AI, digital currency, and brain implants could impact Tesla’s market value.
Overall, the future of Tesla’s sales and market value remains uncertain as Elon Musk’s attention shifts to other ventures. The decline in Tesla sales in various regions, coupled with Musk’s involvement in politics and criticism of regulations, raise concerns about the company’s trajectory. It will be interesting to see how Tesla navigates these challenges and maintains its position in the electric vehicle market amidst changing consumer sentiments and regulatory landscapes.
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