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Tesla starts 2025 with sharp drop in sales in Europe: FT

  • By Al Mayadeen English
  • Source: Financial Times
  • 25 Feb 2025 13:54
  • 1 Shares
3 Min Read

Tesla CEO Elon Musk appears to be indicating that 2025 may be a modest year for the EV giant, with only limited growth in vehicle sales.

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  • Elon Musk, who owns Twitter, Tesla and SpaceX, speaks at the Vivatech fair on June 16, 2023 in Paris. (AP)
    Elon Musk, who owns Twitter, Tesla, and SpaceX, speaks at the Vivatech fair on June 16, 2023, in Paris, France. (AP)

The Financial Times (FT) reported on Tuesday that Tesla sales dropped significantly in Europe in January, indicating a decline in demand for the company's vehicles following increased political involvement by its billionaire CEO, Elon Musk, in the region.

In January, the EV maker sold only 9,900 units in Europe, a more than 45% drop compared to the same period in 2024, according to the European Automobile Manufacturers’ Association. As a result, its market share of new car registrations fell to 1% from 1.8%.

The FT report mentioned that Tesla’s declining market share follows Elon Musk’s controversial involvement in EU politics, where he endorsed the far-right Alternative for Germany (AfD) ahead of the country's elections, drawing backlash across Europe.

Additionally, Musk criticized the EU, calling it "undemocratic" in November.

This decline occurred despite European consumers buying 166,000 battery EVs in January, a 37% increase compared to the same month last year.

Sales of pure EVs grew at a faster rate than all other vehicle types, while sales of petrol and diesel cars dropped by 20.5% and 26.5%, respectively.

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The figures cover the EU, UK, and other markets, including Norway, which is one of Europe's largest EV markets.

Sales by SAIC Motor, the Chinese state-backed carmaker that has expanded into the EU and partnered with Audi in China, rose 37% to 23,000 vehicles in January, marking one of the largest year-on-year increases among major manufacturers in the region. Overall, new vehicle registrations across Europe dropped by 2.1% in January, totaling 995,271 units.

Read next: Musk's net worth hits below $400bln for first time in 2025

Tesla faces calls for boycott in Malaysia

On a related note, Tesla faced growing calls for a boycott in Malaysia due to Musk’s endorsement of Trump's plans to take over Gaza and permanently displace Palestinians. 

After Musk expressed support for Trump, Malaysians took to social media to criticize Tesla's latest Model Y "Juniper" car, even dubbing it a "swasticar," according to the South China Morning Post. The term gained traction after Musk was seen making a hand gesture resembling a Nazi salute during Trump’s inauguration.

Musk has since dismissed the claims about his gestures on X, stating his critics "need better dirty tricks" and expressing his exhaustion over being compared to Adolf Hitler.

The Edge Malaysia reported that amid growing calls for a boycott and concerns about Tesla's potential manufacturing plans in Malaysia, the EV giant's manufacturing plant remains under discussion. Investment, Trade, and Industry Minister Zafrul Abdul Aziz reportedly mentioned that Tesla may assess the commercial viability of setting up the plant, given the intensifying competition in both regional and domestic markets.

  • Europe
  • Tesla
  • Elon Musk

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