Before Tesla’s (TSLA) Q4 2024 earnings call on Jan. 29, the famed EV automaker announced some pretty dismal numbers, including a net year-over-year sales decline and weak earnings numbers that included a 71% dip in net income to $2.3 billion.
Despite signs pointing downwards, Tesla CEO Elon Musk’s mood during the earnings call was somewhat optimistic. He talked mostly about artificial intelligence, robotaxis, and autonomous vehicles rather than the EVs they sell to consumers.
In remarks to investors and analysts, Musk touted a new development with Full-Self Driving, or FSD, announcing that Tesla vehicles equipped with the technology would be capable of picking up and driving around passengers autonomously in Austin, Texas in a matter of a few months.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵
Though Musk had been making wild predictions about his cars’ abilities for nearly a decade, he made sure to check in with those who doubted him.
“Very few people understand the value of self-driving and [Tesla’s] ability to monetize the fleet. Some of these things I’ve said for quite a long time, and I know people have said, ‘Well, Elon, the boy who cried like a wolf like several times.’ But I’m telling you, there’s a damn wolf this time, and you can drive it,” Musk told investors and analysts. “In fact, it could drive you. It’s a self-driving wolf.”
Tesla sales have dipped in Germany by nearly 60% in January 2025; partially due to the political antics of the man dancing in front of the Model Y.
Tesla is experiencing a European sales problem
But despite the optimism, the pure sales numbers of Tesla’s electric vehicles cast a shadow on any prediction or breakthrough he can tout.
Unlike the U.S. and China, EV-friendly Europe is a hotbed for electric vehicle sales and an important market for Tesla. However, last month, sales of Musk’s EV brand plummeted by double-digit percentages in several major European markets, including Germany, the UK, and France.
Germany is home to Tesla’s lone factory in Europe. According to Tesla, the factory’s 11,000 employees are capable of making 2.35 million Model Ys annually. Last month, Tesla sold 1,277 vehicles last month in Deutschland, a massive 59.5% year-over-year drop from the same period last year.
Tesla’s drop in sales can be partially traced to Elon Musk’s recent behavior, which has sparked a tidal wave of backlash in the country. His unabashed support for the controversial far-right AfD party has turned off some from the brand.
Related: Three big takeaways from Tesla’s latest earnings
At the same time, a questionable hand gesture during a celebration of President Donald Trump’s inauguration has been marked as being similar to a salute emblematically symbolic of the country’s checkered past —something that many Germans take offense to.
Though Musk’s political gaffes have turned some off Tesla, conditions in the country have turned many buyers off of EVs.
Electric vehicle sales were in sharp decline last year following the removal of generous government subsidies in December 2023. Previously, German EV buyers were offered up to €4,500 (about $4,700) off the purchase of a new EV.
In 2024, EV sales plunged by 27.4% and have been losing market share to hybrid-electric vehicles and gas-powered vehicles.
More Business of EVs:
Tesla threatened with 100% tariffs in Canada over Musk’s Trump supportThree big takeaways from Tesla’s latest earningsPopular Kia EV faces massive recall over dangerous safety issue
Tesla has sales trouble in other key European markets
Tesla sales are also dropping in other key markets in Europe. Over in France, Tesla sales collapsed by 63%, while Tesla sales across the Channel in the United Kingdom dropped 12%, despite EV sales in the country increasing by 35%.
Tesla is also experiencing double-digit sales declines in other key European EV strongholds. Tesla sales in the home of rivals Volvo and Polestar, Sweden, have dropped by 44%. Sales in Norway; a country that saw EVs account for 88.9% of new cars sold in 2024, drop by 38%, while sales in the Netherlands dropped by 42%.
Some material consequences of the Tesla CEO’s political leanings and beliefs cast an unattractive shadow on his companies.
According to a January 2024 survey conducted by British publication Electrifying, 59% of EV owners and potential EV buyers in the country have been turned off by Tesla because of Musk and his recent antics. Additionally, a Novus survey conducted shortly after Trump’s inauguration showed that 63% of Swedes have a negative view of Musk.
Ultimately, in a world where Tesla is not the only EV manufacturer in town, any sort of conviction benefits the competition in dividends. According to a Reuters report, the combined market share of EVs from Chinese brands like BYD (BYDDY) , MG, and XPeng (XPEV) increased from 5.1% in 2023 to 8.8% in 2024.
“The Norwegian car market is probably one of the toughest in the world,” Norwegian EV association head Christina Bu told Reuters. “There’s fierce competition.”
Tesla Inc. is traded on the NASDAQ as TSLA.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
