DOWNWARD SPIRAL

Tesla’s Sales in Europe Plummet as Musk Backlash Rages On

The EV manufacturer is battling both stiffer competition from China and CEO Elon Musk’s toxic reputation.

Tesla sales have dropped for the fifth consecutive month in Europe, even as other electric vehicles in the region have seen a major sales boost.

During the first five months of 2025, sales of new Teslas slumped by 45.2 percent compared to the same point last year, France24 reports, with increased competition from China and the toxicity of Elon Musk’s personal brand being blamed for the decline.

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Tesla’s stock price dropped 5.4 percent Wednesday morning after the sales reports.

The EV manufacturer’s aging fleet has also done it few favors, with the brand’s revised Model Y doing little to reverse its ailing fortunes despite overall sales of electric vehicles rising by 27.2 percent in the same period.

Earlier this week, Tesla finally started to roll out its long-awaited fleet of robotaxis in Austin, Texas, after years of setbacks.

But while passengers have generally been impressed by the performance of the robotaxis, federal traffic safety regulators have announced they are looking into the viability of the self-driving vehicles after videos surfaced of them driving down the wrong side of the road, and plowing straight through the middle of intersections, along with a number of other irregularities.

“NHTSA is aware of the referenced incidents and is in contact with the manufacturer to gather additional information,” the National Highway Traffic Safety Administration told the Associated press in a statement.

One video of the self-driving car shows the robotaxi driving into a turning lane with a large arrow pointing left, only for it to drive straight through the intersection and end up driving on the wrong side of the road for at least 10 seconds. Another shows one of the vehicles freezing up in the middle of the road when it sees some flashing lights.

Musk has repeatedly claimed that fully automated self-driving cars are more reliable than human drivers and has bet heavily on his robotaxi fleet following the continued decline of Tesla sales and his cratering popularity both at home and abroad.

The MAGA billionaire has been talking about self-driving cars for over a decade, and following the successful test launch in Austin, plans to roll out thousands of the vehicles by the end of the year.

But he faces stiff competition in the market from Google-owned robotaxi firm Waymo, which has been operating in Los Angeles and California for some time now, and recently completed its 10 millionth ride. Amazon’s Zoox is preparing to produce 10,000 self-driving cars annually at a production plant in Silicon Valley.

Musk’s personal reputation has become intertwined with that of his companies since his entry into politics last year, donating nearly $300 million to Donald Trump’s electoral campaign in 2024 and later becoming one of the faces of the current administration as the head of the Department of Government Efficiency (DOGE).

But as his political profile has grown and his support for the far right in both Germany and the United Kingdom has become more prominent, Tesla has been the target of choice for protesters opposing the current wave of right-wing populism.

In February, the “Tesla Takedown” movement staged anti-Musk demonstrations at dealerships in the U.S. and Europe, and there was a spate of vandalism against individual vehicles and charging stations. Cybertrucks were seen on video being set on fire, while other vehicles had the word “Nazi” spray-painted or etched into their sides.

Tesla’s Q1 revenue plunged 20 percent from last year, and its stock price was down by 41 percent.

The Daily Beast has contacted Tesla for comment.

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