New data on Tesla sales raises concerns about future performance: 'You really have to look at it quarter by quarter'

The controversial behavior of Tesla CEO Elon Musk may finally be catching up with him. 

Recently released data shows a sharp decline in Tesla sales over the past year, a data point that could be related to any number of factors but certainly stands out after weeks of Musk's involvement in governmental reductions and firings. 

According to Newsweek, citing a CNN/SSRS poll, "53 percent of Americans hold an unfavorable opinion of Musk, while 35 percent view him positively," and a YouGov EuroTrack survey shows even more negative views in Europe, such as 71% of German respondents professing a negative view. 

While he still has his share of supporters, the numbers paint a clear picture of polarization, which could be having an effect on sales at Tesla. 

What's happening?

Data released by the European Automobile Manufacturers' Association shows that Tesla registrations (used as a general indicator of sales by automobile manufacturers) across Europe dropped by 45% in a comparison between January 2024 and January 2025. 

Previously published data from the same period also showed that Tesla sales fell by almost 60% in Germany, the largest electric vehicle market on the continent, with major declines in France and Norway as well.

Tesla's stock has also taken a massive hit, with a drop from a 52-week high of $488.54 to under $240 this week. 

Why are Tesla's recent struggles notable?

Tesla has long been dominant in the EV market, but it's possible that the company's superpower status in the industry is eroding, at least for a while.

This could be due to a number of factors. Certainly, there are Musk's political actions, which seemingly have led to some instances of vandalism of Tesla cars, protests at dealerships, and even viral ads specifically targeting the company. But it's not necessarily that simple.

"You really have to look at it quarter by quarter," said Mark Wakefield, an automotive consultant. Similar to how economists generally define a recession, it will likely take a second bad quarter in a row before investors start panicking. 

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Enthusiasm for EVs has not significantly diminished and other automakers are growing their EV divisions, but seeing as how Tesla remains the industry's giant, customers may choose to stick with a gas-guzzler rather than purchase a product with significant social stigma.

What can be done to increase EV sales?

This is not leading to a measurable hit to overall EV sales, at least not as of yet, but there are actionable steps worth taking, both by individuals and by automakers, to try to restore the EV market's upward trajectory.

For companies, methods of attack are plentiful. EVs can reduce costs, use mass media to market their EVs as unique and distinct from Tesla, or even offer financial incentives to customers.

For people who are enthusiastic about moving to a clean-energy future, one way to perhaps make small changes in our communities is by talking to friends and family about the benefits of EVs, reminding them that other companies besides Tesla have cars on the market. 

The Venn diagram of people interested in going green and people angry at Elon Musk's recent actions has significant crossover, so there is a real opportunity to not only rescue the EV industry from potential decline, but to boost it even further.

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