While EV demand has skyrocketed across the continent, Tesla is upset amidst the controversy over CEO Elon Musk’s public remarks and political engagement.
Last month, Tesla sold only 7,261 cars in Europe, down 49% from 14,228 cars a year ago. Meanwhile, overall electric vehicle sales in the region jumped nearly 28%, indicating how much Tesla has lost ground in one of its major markets.
Tesla’s DIP will upgrade its top-selling model Y SUV, partly reflecting the temporary factory closure, but deeper issues have been heavily on the brand, including consumer backlash against Tesla CEO Elon Musk’s political activity.
“From next month, I will allocate much more time to Tesla, and now the main work to establish government efficiency is complete,” Musk told investors in a revenue call on April 22.
Musk added that in his remarks he will continue to support Doge to prevent the waste and fraud we have stopped from roaring as Tesla reported a 71% revenue decline in the first quarter of 2025.
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Some experts point to Musk’s alliance with Trump administration’s policies and controversial public statements as the main driver of consumer backlash, especially in the liberal trend markets where Tesla once flourished.
“He alienates the wrong people,” Galloway said, adding that Musk instead “is comfortable with people who are not interested in EVs.”
“I did what I had to do,” Musk replied. He accused what he said, along with threats to him and his employees, was “massive violence” committed against his company.
“They are on the wrong side of history,” Musk said of the assailants. “A lot of them go to prison — and they deserve it.”
Musk, who spent nearly $300 million on Trump’s 2024 campaign and other Republican candidates, said he would spend “a lot less” politically in the future at the Qatar event. When asked why, he replied: “I think I did enough.”
At the same time, Musk had kept the possibilities of future contributions open, but reaffirmed his commitment to leading Tesla as chief executive for at least five years, jokingly saying that the only way he could step down was “if I die.”
