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Tesla's sales are experiencing a significant downturn worldwide as consumers react to CEO Elon Musk’s political stance and increasing competition in the electric vehicle (EV) market. The automaker’s struggles come amid a broader economic slowdown and shifting consumer sentiment.

Steepest Stock Drop in Five Years

Tesla’s stock plummeted 15% by the close of trading on Monday, marking its sharpest decline in half a decade. The drop followed market-wide losses triggered by former U.S. President Donald Trump’s Sunday remarks hinting at an impending recession.

Trump appeared to acknowledge Tesla’s struggles in a Truth Social post on Monday night, blaming the downturn on “radical left lunatics” boycotting the brand. In the same post, he pledged to “buy a brand new Tesla” in support of the company.

Global Sales Decline

Recent data indicates that Tesla’s sales have fallen sharply in several key markets across Europe, China, and Australia, despite an overall rise in electric and hybrid vehicle adoption.

Europe: Tesla's Decline Despite EV Growth

In January 2025, Tesla sold just 7,517 vehicles across Europe, a 50% drop compared to the same period in 2024, according to the European Automobile Manufacturers’ Association (ACEA). The decline is particularly striking as overall EV sales rose amid the European Union's tightening emissions regulations.

• Germany, Europe’s largest EV market, saw a 30% increase in electric car sales in February. Yet, Tesla’s registrations plunged over 70%, with fewer than 1,500 new Teslas hitting German roads last month.
• In France, Tesla’s sales dropped 45%, while in Portugal, the decline was 50%.
• Sweden and Norway, both strong EV markets, saw 42% and 48% declines in Tesla sales, respectively, between January and February 2025, according to Reuters.

Australia: A Dramatic Downturn

Australia has also seen a steep decline in Tesla sales. According to the Electric Vehicle Council, Tesla recorded just 1,592 sales in February—down 70% from 5,665 sales in February 2024, per The Guardian.

China: Fierce Competition from BYD

Tesla’s Chinese operations—which include both local sales and exports—have suffered as domestic automakers dominate the market. In February, Tesla exported just 30,688 vehicles, a 49% drop and the lowest monthly figure since July 2022, according to Bloomberg.

Chinese EV giant BYD, a major Tesla competitor, sold over 318,000 electric and hybrid vehicles last month, marking a staggering 161% year-over-year increase.

Tesla’s U.S. Market Performance

Even in its home market, Tesla is facing challenges. California, the largest U.S. market for EVs, has seen five consecutive quarters of Tesla sales declines, according to the California New Car Dealers Association (CNCDA). This is particularly notable given California’s mandate that 35% of new 2026 car models must be zero-emission vehicles.

A Rare Bright Spot: The UK

While Tesla’s global sales are largely in decline, Britain stands out as an exception. The UK experienced record EV sales in 2024, and Tesla saw a 20% increase in February 2025.

Musk’s Response: “With Great Difficulty”

Elon Musk has remained largely silent on Tesla’s global sales slump. However, when asked by Fox Business’s Larry Kudlow about managing his various companies, Musk simply responded: “With great difficulty.”

With increasing political backlash, rising competition, and shifting consumer sentiment, Tesla faces mounting challenges in maintaining its dominance in the EV market. Whether the company can recover its momentum remains to be seen.