Falling numbers have been reported in Tesla vehicle registrations, a sharp 76% decrease last month in Germany represents one of the most significant drops. Critics suggest this may be a consumer backlash against the electric vehicle company as a result of CEO Elon Musk's political activism. Chrystia Freeland, the former finance minister for Canada, in her campaign to succeed PM Justin Trudeau, suggested implementing a 100% tariff on Tesla vehicles in response to Trump’s 25% tariff on Canadian commodities.
In the United States, Musk’s close relationship with the Trump administration has reportedly distanced some environmentally conscious Tesla owners and potential purchasers. Instances of vandalized Teslas have occurred following Trump’s re-election. The extent to which Musk's actions impact Tesla's brand reputation is disputed by investors and market analysts - some of whom worry more about his governmental focus potentially diverting attention from the business.
Goldman Sachs analysts earlier this week lessened their projected first-quarter sales, attributing this to the introduction of a new Model Y and weaker-than-predicted demand. Their statement reveals that according to surveys from data supplier HundredX, the trust people have in the Tesla brand and their future intention to purchase Tesla vehicles has “decreased significantly” compared to summer figures.
Musk has openly shown support for the far-right group ‘Alternative for Germany’ during the previous month’s federal elections, even giving an appearance at an AfD rally this January. A YouGov poll in January showed over 70% of German participants held a negative opinion of Musk, with a similar proportion indicating his attempts to exert political influence as inappropriate.
A slump in Tesla’s German sales may be indicative of a wider international backlash against Musk. Registration numbers in the European Union dropped 50% in January, whilst total registrations for battery electric vehicles increased by 34%. Chinese shipments were also down almost 50% in February, based on data from China’s Passenger Car Association reported by Bloomberg.
The US second-hand Tesla market is proving increasingly challenging for sellers. Data from CarGurus shows the average used Tesla price has dropped 4% in the last 90 days, more than double the average for all cars.
Despite musings from investors, Tesla shares were up slightly on Wednesday. Shares of some competitors however, soared amid expectations that the Trump administration could lower the tariff burden on automakers. Tesla stock has taken a nearly 36% hit since Donald Trump's inauguration, almost entirely obliterating any post-election surge.