Tesla and its controversial CEO Elon Musk continue to get bad news. According to CNBC, Tesla stock and global sales plummeted in early 2025. Meanwhile, new EV sales overall dropped slightly from January to February but increased in February compared to the prior year, as Cox Automotive reported.
What's happening?
February was Tesla's worst month since December 2022, per the news outlet. The stock dropped 28% in February following declining sales, especially in Europe. New Tesla registrations, a metric used to track sales in Europe, dropped 45% between January 2024 and January 2025, as NPR reported.
Tesla sales in February were down 76% in Germany compared to a year ago. In fact, sales dropped 41% in 2024 compared to 2023, and it doesn't look like they'll recover there anytime soon, as 94% of 100,000 Germans who took part in a recent survey said they won't buy a Tesla.
Tesla's stock decline continued into March, with Investor's Business Daily reporting on March 21 that Tesla stock entered the day down more than 19% in March and was "working on its ninth straight weekly decline."
Sales have also taken major hits in Australia, China, and the U.S. Tesla owners in the U.S. are even reportedly looking to part ways with their vehicles at an unprecedented rate.
It's entirely possible much of this is happening due in part to the fact that there are more EVs available to consumers now than ever before, but the strong possibility that it's because of Musk's aggressive political activity — which has made him somewhat of a lightning rod for both supporters and detractors — can't be ignored. That is especially true as many Tesla dealerships have been the site of public protests and vandalism.
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Musk was tabbed by President Donald Trump to oversee the Department of Government Efficiency (DOGE), which has been responsible for the firing of thousands of government workers, many of whom have since been offered their jobs back with back pay after the firings were deemed unlawful in court. DOGE and Musk have set out to reduce what they have called wasteful government spending, with other actions including the canceling of many contracts and steps to dismantle or diminish the U.S. Agency for International Development and the Consumer Financial Protection Bureau.
While Musk has defended those actions as ways to reduce the government deficit, recent reporting from outlets such as the Guardian has shown they appear to be prompting much of the protesting and the drops in sales and stock numbers, with one protester telling the publication that "Tesla is a good target."
Why are Tesla's troubles important?
Tesla's struggles may lead people to decide against making their next car an EV, but so far, that doesn't seem to be the case. Global EV sales in 2024 were up an astounding 25% despite Tesla's sales already beginning to plummet.
That means more people are choosing to upgrade to an EV while rejecting gas-powered vehicles that add carbon pollution and other planet-heating exhaust to the atmosphere, contributing to extreme weather events.
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What's being done about Tesla's struggles?
Musk doesn't seem to be too worried. He recently posted on social media that a "1000% gain for Tesla in 5 years is possible."
Musk may be expecting a boost from conservative voters, as President Trump recently held a press event with Teslas on display at the White House as he spoke glowingly about the vehicles.
Musk might also be counting on government contracts from the Trump administration, though one deal that reportedly increased from $483,000 to $400 million appears to have been canceled for now. His Starlink and SpaceX companies have reportedly already been granted some new government contracts, though, with more possibly on the way.
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