Tesla experienced reduced sales in January across five European countries, including the United Kingdom and France, as newer model competitors gained ground and public sentiment towards the CEO, Elon Musk, soured.
In the UK, Tesla's sales dropped by nearly 12% in January, while monthly EV registrations in Europe hit a record high. Sales in France plummeted by 63%, and similar declines were seen in Sweden, Norway, and the Netherlands. In the US, the largest car market, Tesla sales fell by 12%.
Although Tesla faced its first-ever annual decline in deliveries in 2024, it remains a top EV seller in the US. Musk announced plans to step down from his CEO role in 2025, while the company focuses on enhancing autonomous driving technologies.
Following Musk's political involvement and controversial statements, polls indicated a decline in Tesla's popularity among European consumers, with increased competition from other EV manufacturers. Musk's influence has become divisive, deterring potential Tesla buyers, according to a survey by Electrifying.com.
Despite these challenges, Tesla's stock continues to outperform the market, doubling in value over the past year. Notably, the company's forward price-to-earnings ratio exceeds 131, surpassing both traditional automakers and high-tech stocks.