The decline comes amid growing criticism of Tesla’s aging vehicle lineup and backlash against CEO Elon Musk. In Europe, Musk’s endorsement of Germany’s far-right Alternative for Germany (AfD) party in last month’s national election sparked widespread condemnation.
Tesla faces intensified competition from major automakers expanding their EV production, including China’s BYD. On Tuesday, BYD reported record revenue of 777.1 billion yuan ($107 billion) for 2024, with sales of its electric and hybrid vehicles rising 40%. Earlier this month, the company introduced an ultra-fast EV charging system that it claims rivals the speed of refueling at a gas station.
Tesla's sales in January and February dropped to 19,046 from 37,311 in the same period in 2024. This decline contrasts with a 28.4% increase in overall battery-electric vehicle sales in Europe.
German politicians and media outlets strongly criticized Musk over his support for the AfD. Meanwhile, Tesla vehicles and dealerships in both the US and Europe have been targeted by protesters opposing his endorsement and his advisory role to US President Donald Trump in efforts to reduce the size of the federal government.
Tesla’s global sales have also been declining. In January, the company reported its first annual sales drop in over a decade. The Cybertruck, Tesla’s latest model, has faced multiple recalls, including one last week involving nearly all units due to side panels that could detach while driving.
This marks the eighth recall for the Cybertruck since deliveries began just over a year ago.