Tesla Sales Tank as Elon Musk Boycott Gathers Steam

Key Takeaways

• Tesla sales have declined significantly in January and February.
• While there are macroeconomic factors behind the decline, a backlash against CEO Elon Musk could also be to blame.
• According to one survey, 60% of car buyers would be put off buying a Tesla because of its controversial CEO.

Protests outside Tesla showrooms across the U.S. have erupted onto the international stage, with further demonstrations taking place in Canada and Europe.

As CEO Elon Musk’s role in reshaping the U.S. government continues to drive anger at the company, Tesla’s sales and share price have declined significantly.

Tesla Protests Go International

Protests outside Tesla showrooms first occurred at the beginning of March and have taken place every weekend since then.

Although demonstrations were initially limited to the U.S., on Saturday, March 15, protestors gathered outside Tesla dealerships in London and Ottawa to voice their grievances.

Other forms of protest emerging in the U.K. include satirical billboards in London that appear to parody Elon Musk’s recent controversy.

Meanwhile, the #boycottTesla hashtag is being used to call for divestment from the electric vehicle company

TSLA Worst Performing Stock in the S&P 500

Although few companies have been untouched by the latest market downturn, TSLA has the unenviable title of worst-performing stock in the S&P 500 this year.

After a post-election rally boosted Tesla’s share price in November and early December 2024. It hit a peak of around $480 on Dec. 17.

Since then, the electric vehicle (EV) maker has lost more than half its value, collapsing to $222 at the close on Monday, March 10.

So far in 2025, Tesla stock has declined over 41%, more than any other company in the S&P 500, going from being the eighth most valuable company in the world worth $1.3 trillion to the twelfth, with a market capitalization of just $714 billion.

Underlying factors behind the selloff include dwindling EV sales and a growing backlash against Musk’s efforts to reshape the U.S. government.

Tesla’s Sales Crash for Second Month in a Row

In January 2025, Tesla sales dropped off a cliff across several key markets, significantly underperforming compared to the same period in 2024.

In California, a key market for the electric vehicle (EV) maker, nearly 12% fewer Teslas were registered in January 2025 versus a year previously.

Analysis by Electrek suggests that the company could be in even more trouble in Europe, where the EV intelligence company found that Tesla sales dropped in every market.

In the worst case, Tesla sold 75.4% fewer units in Spain than in January last year. Dramatic drops were also reported in France (63.4%), Sweden (46%), and the Netherlands (42.5%).

Now, as February’s numbers come in, it looks like Tesla has experienced another month of weak sales.

The latest data from Sweden shows that 42% fewer Teslas were registered in February compared to last year.

Registrations in Norway and Denmark each fell by 48%, while the French car body PFA confirmed Electrek’s findings, reporting a 45% decline in registrations over the first two months of the year.

What’s Behind the Tesla Sales Slump?

People decide which car to buy for many reasons, and multiple factors are behind Tesla’s weak sales numbers.

A significant part of Tesla’s sales drop can be attributed to a global slowdown in sales that has affected the entire industry. S&P forecasters have observed that 2025 is shaping up to be “ultra-challenging” for automakers, with the EV sector especially facing headwinds.

However, the decline in Tesla sales is among the most dramatic, leading many to speculate that anti-Musk sentiment is to blame.

There is certainly evidence that existing Tesla owners want to distance themselves from the company’s CEO, such as the recent trend for bumper stickers with phrases like “I bought this before Elon was crazy.”

There are also a growing number of reports of Tesla owners selling their vehicles in protest.

Moreover, a recent survey of car buyers found that 60% said Musk’s controversial reputation would put them off buying a Tesla.

The Elon Musk Effect

Significantly, European sales data point to a stronger decline in politically liberal countries.

This pattern can also be observed in the U.S. In an analysis of data from S&P Mobility, CNN found significant discrepancies between Tesla sales in red states versus blue states.

Between 2023 and 2024, in states where the majority of people voted for the Democratic candidate in the last four presidential elections, repeat buying, i.e., buying another Tesla after already owning one, dropped significantly.

In contrast, in states that reliably vote Republican, repeat buying increased slightly.