Tesla Faces Major Crisis: Stock and Sales Plummet as Elon Musk’s Political Moves Backfire
Tesla, the electric vehicle giant, is experiencing a significant downturn as its stock price continues to slide, dropping over 40% since January.
In a troubling trend, European sales have plummeted, raising concerns among investors and prompting calls for CEO Elon Musk to step down.
The primary driver behind this decline appears to be Musk’s increasing involvement in politics, which has alienated a segment of Tesla’s customer base.
Traditionally, investors in Tesla have been more focused on the company’s performance than on Musk’s political activities.
However, as his comments and actions in the political arena have intensified, they are now affecting the bottom line.
Musk’s controversial statements regarding the Russia-Ukraine war have particularly drawn ire, with many questioning his credibility.
His assertion that Ukraine instigated the conflict and his calls for the removal of Ukrainian President Volodymyr Zelenskyy have not sat well with consumers in Europe, where the war’s implications are felt more acutely.
Sales figures illustrate the severity of the situation.
In January 2024, Tesla sold approximately 18,000 vehicles in Europe, but that number plummeted to around 10,000 in January 2025—a staggering 45% drop.
Specific countries have shown even more alarming declines: Germany saw a 59% decrease in sales, while France experienced a 63% drop.
Spain’s sales fell by 75%, and the UK saw an 18% decrease.
These statistics are particularly troubling given that January is typically a low month for car sales, indicating a deeper issue.
Investor sentiment has shifted dramatically as a result of these trends.
Tesla’s share price, which peaked at $484 in December, has now fallen to around $246, reflecting a near 50% decline.
