European sales of Tesla plummet as Musk faces criticism
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European sales of slick electric vehicles are skewing south for Tesla. The celebrated automaker experienced a 45% dip in Q1 2025 sales within the 27-nation bloc, hitting 36,000 units, according to the European Automobile Manufacturers' Association's report.
March's sales took the hardest hit, plummeting an alarming 36%, making Tesla the most affected among prominent automakers, despite a larger growth in electric vehicle market.
Tesla's retail outlets in Europe and the US have faced vandalism, protests, and boycott calls amidst public service cuts advocated by CEO Elon Musk when serving as a close Trump advisor.
On Tuesday, the company revealed a 71% fall in Q1 profits, a sign of weakening demand due to shifting political sentiment. The profits totaled $409 million, following a drop in sales, while revenues slipped 9% to $19.3 billion.
Following the financial report, Musk vowed to minimize his White House commitments to concentrate on Tesla, starting in May.
Tariff Worries Mainstream
Donald Trump's unyielding trade strategies ruffle concerns within the auto sector after he imposed 25% tariffs on foreign-sourced cars in the U.S. These taxes intended to boost American manufacturing.
"Uncertainty in the automotive and energy markets continues to intensify as swiftly evolving trade policy negatively impacts the global supply chain and expense structure of Tesla and our rivals,” Tesla stated on Tuesday.
"This unstable environment, along with altering political sentiments, could have a significant impact on demand for our products in the immediate future."
Tesla named tariffs additional hurdles for the company, with analysts also citing a familiar lineup of vehicles and other challenges confronting Tesla.
Yet, Tesla promised to introduce new vehicles, including cheaper models, during the first half of 2025.
Experts caution of substantial harm to Tesla's image due to Musk's positions within the "Department of Government Efficiency", which obtains access to sensitive government databases and introduces mass layoffs.
EU's Electric Car Race
Electric vehicle sales ascended in numerous EU nations like Germany and non-EU associate, Britain, as reported by ACEA. However, electric vehicles only constituted 15% of the automotive market.
As part of its ambitious initiatives to counteract climate change, the EU launched emission-reduction targets to phase out fossil fuel-powered vehicles by 2035.
ACEA Director-General Sigrid de Vries noted in a press release the existence of a "persistent gap between ambitious decarbonization goals and the reality check of slower-than-expected consumer adoption" of electric vehicles.
"It's crucial that policymakers prioritize measures stimulating a supportive ecosystem – from charging infrastructure to fiscal incentives – to ensure rapid growth in zero-emission vehicle adoption," de Vries stated.
Hybrid cars, which feature a combination of electric and gasoline engines, led the European market, with 36% share compared to 29% for gasoline-only models.
The European auto industry grapples with high manufacturing costs, a gradual shift towards electric vehicles, and intensified competition from Asia, particularly China.
Some manufacturers lament the transition process is harder than envisioned, as consumers still need to be won over by the advantages of electric vehicles, which carry relatively higher initial prices and an undeveloped secondary market.
Musk, during a call on Tuesday, reaffirmed his optimistic outlook for Tesla, emphasizing the company's dominance in forward-looking domains like robotics, autonomous driving, and artificial intelligence.
© 2025 AFP
- In light of the increased tariffs imposed by Donald Trump on foreign-sourced cars in the United States, Tesla highlighted concerns about their impact on its supply chain and expenses.
- The CEO of Tesla, Elon Musk, vowed to focus more on the company and decrease his White House commitments, starting in May.
- Despite the challenging financial situation, Tesla plans to introduce new vehicles, including cheaper models, during the first half of 2025.
- Europe's electric vehicle sales are growing in countries like Germany and Britain, but they only account for 15% of the automotive market, according to ACEA.
- Experts encourage policymakers to prioritize measures that stimulate a supportive ecosystem for the rapid growth of zero-emission vehicle adoption, such as charging infrastructure and fiscal incentives.
