At the same time, overall vehicle demand - including electric vehicles - is rising in all three Scandinavian countries, meaning Tesla's market share in these countries is eroding. Tesla ranks first in sales in Sweden, Norway and Denmark in 2023 and 2024, but sales so far this year have lagged behind rivals such as Volkswagen and Toyota with new model lineups.
Tesla CEO Musk has frequently spoken out in EU politics and openly supported Germany's far-right Alternative for Germany (AfD) party, which has triggered widespread political controversy and triggered demonstrations calling for "Tesla to be removed from the shelves."
In Norway, almost all new cars registered are electric. Tesla's market share in Norway has fallen sharply to 8.8% so far this year, from 18.9% in 2024 and 20% in 2023. Industry group the Norwegian Road Federation (OFV) said on Monday it was unclear whether Tesla would regain its former position as the car of choice. OFV said in a statement: "For many years, the Tesla brand has had a unique market position in Norway. But whether this will continue is uncertain, as there is a lot of turmoil and noise surrounding Tesla and Musk."
In Denmark, a growing number of potential buyers are turning to the Danish Motor Drivers' Federation (FDM) for advice, saying they are looking for an alternative to Tesla. "A lot of people just said, 'I want to buy an electric car, but I don't want to buy a Tesla,'" said Ilyas Dogru, chief consultant at FDM. "Political consumers have always been there, but now the impact on Tesla is more obvious."
Atle Falch Tuverud, editor-in-chief of the Norwegian automotive industry publication "Bil Nytt", said that Musk has long been admired by people as a successful industrialist, but he himself seems to have become the car brand's biggest enemy. "There is no doubt that Tesla has now lost some existing customers, and it is absolutely certain that Tesla has lost some potential customers," he said, adding that it could take several months to fully assess the impact on Tesla sales.
Ilyas Dogru said that a preliminary assessment may occur from March to June this year, when Tesla's redesigned Model Y will begin delivery, and the company may also choose to compete more aggressively on price.
Data show that Tesla's car sales in Germany in January fell by nearly 60% year-on-year; sales in Europe in January were only 9,900 vehicles, a year-on-year drop of more than 45%. At the same time, the overall sales of new electric vehicles in continental Europe increased by more than 37% in January, which increased the electric share of electric vehicles in the European automobile market to 15%. This means that Tesla’s decline in European sales in January cannot be attributed to the European market environment.
Analysts believe that there are many reasons for Tesla’s European sales decline in January. Musk’s political involvement in Europe is considered to have a negative impact on the brand’s image. In addition to political factors, consumers' wait-and-see mood is also an important reason for the decline in sales. With the upcoming release of the new Model Y in the first half of 2025, many consumers choose to postpone car purchases temporarily.
In addition to a sharp decline in sales in Europe in January, Tesla's sales in California fell 11.6% year-on-year in the fourth quarter of 2024, according to the California New Car Dealers Association. California has always been Tesla's largest consumer region in the U.S. market. This data has triggered more concerns about Tesla's domestic sales in the United States.
In addition, Tesla's competitiveness in the Chinese market is also worrying. Reports indicate that some of Tesla’s much-anticipated upgrades to its autonomous driving system failed to meet owner expectations. Many users said that the "urban road navigation" function launched by Tesla in the Chinese market is far from the level of full autonomous driving promised by Musk. Chinese electric vehicle manufacturers such as BYD are already offering similar self-driving features at lower prices or even for free, a situation that has exacerbated investors' concerns about Tesla's declining competitiveness in the Chinese market.
Investors are also worried about Musk's political moves. Musk is currently dedicating a lot of his energy to Washington, D.C., leading the Trump administration's "Department of Government Effectiveness (DOGE)." Under the department, Musk and his team gained unprecedented access to government computer systems and taxpayer data, and were authorized by the Trump administration to lay off workers at government agencies on a mass scale that oversees companies like Tesla. These moves have raised further questions about Tesla's future direction.
According to reports, many demonstrators gathered outside Tesla stores in many places in the United States on March 1, local time, to protest against Musk's decision to lead the Department of Government Efficiency to promote cuts in federal spending at the request of U.S. President Trump. The demonstrations calling for Tesla to be "taken off the shelves" are part of a growing backlash in North America and Europe over Musk's role in causing chaos in Washington. Critics of Trump and Musk hope to combat the automaker by boycotting the automaker and making buying a Tesla a "stigmatized" act.
It is reported that there are more than 50 events listed on the "Tesla off the shelves" protest website, and more demonstrations are planned for later in March, involving various parts of the United States, as well as the United Kingdom, Spain and Portugal.