By DCB Editorial, February 7, 2025
The old adage still holds true: what goes up must eventually come down. This seems to apply to Tesla, which has blazed a sales trail for EVs for years. Part of Tesla’s meteoric rise can be attributed to Elon Musk and his unfiltered “truth bombs.”
However, as Musk increasingly ventures into the political arena, his appeal to a broad audience appears to be waning. Tesla’s customers aren’t questioning the quality of its vehicles — widely regarded as the best EVs outside of China — but rather Elon Musk himself.
Musk is a disruptor, but his involvement in U.S. politics has placed a spotlight on his complex and often contradictory persona. Like a blockchain, his character seems composed of disparate, opaque elements, making it difficult to pinpoint exactly where he stands or what he stands for. While his relentless pursuit of wealth isn’t surprising, he’s paradoxically painted both as a far-right figure and as someone who wants to save humanity through SpaceX and create a more sustainable world with Tesla.
The media often portrays Musk in an unflattering light, but he remains responsible for his own words. He knows full well that the media will twist narratives to grab headlines or support specific agendas. Yet Musk’s open support for controversial figures like Tommy Robinson — known in the UK for his far-right views — is causing prospective Tesla buyers to have second thoughts.
Tesla experienced a significant decline in sales across five major European countries in January, including the UK and France, where sales dropped by nearly 12% and 63%, respectively. Similar decreases were seen in Sweden (44%), Norway (38%), and the Netherlands (42%). In California, Tesla’s largest U.S. market, sales also fell by 12%. Despite remaining the leading EV seller in the U.S., Tesla recorded its first-ever annual decline in deliveries in 2024.
The company dropped from the No. 2 to the No. 7 spot for EV sales in Britain, falling behind Volkswagen, Mercedes, and Stellantis’ Peugeot. Rising competition with newer models and growing public dissatisfaction with CEO Elon Musk are contributing factors. In response, Musk announced plans to launch more affordable EVs in 2025 and emphasized a renewed focus on autonomous driving technologies. Tesla did not comment on the sales figures.
A late January survey by Electrifying.com found that 59% of British EV owners and prospective buyers are discouraged from purchasing a Tesla due to Elon Musk’s influence. Ben Nelmes, chief executive of New AutoMotive, suggested Tesla’s issues are more related to its lack of new mainstream models since the 2020 Model Y, while competitors, including Chinese EV makers, offer fresher products.
Despite these challenges, Tesla’s stock has outperformed the market, more than doubling in value over the past year, with a forward P/E ratio exceeding 131 — far surpassing both traditional automakers and high-flying tech stocks.
