
Impact of Musk’s Political Support on Tesla’s German Sales
In recent months, Tesla has experienced a significant decline in sales in Germany, with vehicle registrations dropping by 76% in February compared to the previous year, following a 60% decrease in January.
This downturn contrasts with the overall electric vehicle (EV) market in Germany, which saw a 30.8% increase in sales during the same period.
Analysts attribute Tesla’s declining performance partly to CEO Elon Musk’s political involvement, specifically his support for Germany’s far-right Alternative for Germany (AfD) party. Musk’s endorsement has reportedly alienated a segment of Tesla’s potential customer base in Germany, a country sensitive to far-right ideologies due to its history.
Ferdinand Dudenhoeffer, director of the Center Automotive Research Institute in Germany, commented that Musk’s behavior is “extremely damaging,” noting that “nobody wants to be associated with it… Tesla and Musk are almost inextricably linked.”
Additionally, Musk’s controversial actions, such as a gesture at a U.S. presidential inauguration event that critics likened to a Nazi salute, have further strained Tesla’s image in Germany. Activists responded by projecting an image of the salute and the word “Heil” onto the outside of Tesla’s plant near Berlin.
While the removal of government subsidies for EVs in Germany has impacted the industry, Tesla’s sharper decline suggests that factors beyond market conditions are affecting its sales. The company’s challenges in Germany highlight the potential repercussions of a CEO’s political affiliations on consumer perceptions and brand performance.