Electric vehicle (EV) manufacturer Tesla is passing through a slump in sales and popularity in Europe, attributed to some of its CEO Elon Musk’s political exposure in the new Trump Administration. At the same time, according to data, it may simply be due to increased competition and misshapen investments.
According to data, Tesla suffered from a loss of market value and popularity. Market research company Brand Finance showed that Tesla slipped into third place among the most valuable car brands, behind Japan’s Toyota and Germany’s Mercedes-Benz, from a first-place position last year. Moreover, it lost 23 billion dollars in value from 2023, dropping to around $43 billion from $66.2 billion.
In addition, data from the Association of European Automobile Manufacturers (ACEA) showed a notable shrink in Tesla’s market share on the continent. The company went from a market share of 18.2% among EV cars in 2023 to 6% in January 2025. Even in the US, where Tesla remains the top car brand in the EV segment, the company halved its market share, going from 74.8% in 2022 to 44.4% in the fourth quarter of 2024.
In its analysis, Brand Finance lists several reasons, including missed sales expectations, a broadening of companies entering the sector and a lacklustre reception of autonomous driving technology.
The change in the political landscape in the USA and in Europe is also factored in, with the US dropping subsidies for EVs and Europe pausing interventions against combustion engines.
Despite the hiccups, it is too early to consider the behaviour of Elon Musk to be also responsible for the slump. While many in Europe and in the US are adding stickers to their Tesla cars that claim that they bought the car before “Elon went crazy” and an American-based group called Tesla Takedown is organising protests at Tesla dealerships, Elon Musk still is viewed favourably by many in the American public.
However, with Donald Trump’s second term only in its early stages and Musk being very supportive of far-right parties in Europe, it may be only a matter of time before Tesla’s CEO impacts its sales.
