Sales plummeted in Germany after the billionaire expressed his support for the country’s far-right. Sales of Tesla electric vehicles also fell in France and the UK last month.
advertisementAccording to the country’s Federal Motor Transport Agency, electric vehicle manufacturer Tesla saw car sales fall 59% from the previous year in Germany last month.
Tesla, the world’s largest EV manufacturer with only European factory in Germany, registered 1,277 new cars in the country in January.
This is the lowest monthly figure seen since July 2021.
It is also despite the fact that Germany’s wider EV market rose 54% in January, with Tesla’s market share falling from 14% to 4%.
Various reasons for sales slump
Experts say there are many factors that could have contributed to the sales recession.
One possible possibility is CEO Elon Musk’s growing status as a political figure and his support for the far-right figure.
Musk is publicly supporting the German (AFD) party’s far-right alternative as Germany prepares for a federal election later this month.
The group has specifically campaigned for the massive deportation of German immigrants, known for its eurosceptic and pro-Moscow views.
Elon Musk made a surprising appearance at the AFD event last month, telling participants:
“There’s too much focus on past guilt and we need to move beyond that,” he said – it appears to be referring to Germany’s historic Nazi government.
“Children must not commit the crimes of their parents, let alone great grandparents,” Musk argued.
The world’s wealthiest man also hosted AFD leader Alice Weidel on his social media channel X last month.
Decline in France and the UK
Musk’s foray into German politics is because South African entrepreneurs have solidified themselves as President Donald Trump’s right-hand man in the US, securing their role as “special government officials.”
Musk’s order is to deploy a government efficiency initiative known as Doge, a radical cost-cutting program.
Except for Musk’s political loyalty, experts note that Tesla’s poor sales may be linked to the manufacturer’s Model Y rollout.
advertisementIt is possible that some customers have refrained from purchasing Tesla cars in January as they are waiting for a new Model Y, which is scheduled to begin earlier this year.
Others suggest that shortages may have contributed to the recession after Tesla pushed to boost sales late last year.
The automaker also saw sales in France and the UK fell by 63% and 12%, respectively, last month.
