Last year, Tesla’s worldwide vehicle deliveries slipped 1%, the first drop in more than a decade, even though industrywide EV sales rose 25%. In the U.S., Tesla sales fell 7% last year, and by 2% in the first two months of this year, according to estimates by research firm Wards Intelligence.
And worrisome numbers have begun surfacing in foreign markets. In February, Tesla new-vehicle registrations plummeted by 76.3% in Germany and 26% in France, according to government and industry association data. Tesla China, which exports to other countries, delivered 30,688 new cars in February, down 49% from the year-earlier period, partly because of increased competition from domestic EV makers.
Analysts attribute the declines partly to market factors, including customers waiting for a refreshed Tesla Model Y scheduled to be released in this month. Still, they say, Musk’s actions are a factor, particularly in Germany.
“When you play politics, there is always a risk,” said Felipe Munoz, an analyst with the automotive consumer-research firm JATO Dynamics.
The value of Tesla’s stock skyrocketed after President Trump’s victory, with investors hopeful that Musk’s proximity to the president would benefit his businesses. Investors also liked Musk’s heightened focus on artificial intelligence and robotics at Tesla, which plans to start building its first fully self-driving car in 2026.
This year, though, the shares have dropped 35%, wiping out most of the postelection gains. Still, Tesla is valued at about $847 billion, according to FactSet, more than any other car company.
Sales and survey data suggest that politics is affecting demand. Republicans are now more likely to say they would buy a Tesla than Democrats, a sharp reversal from much of the company’s history, according to survey data from research firm Morning Consult.
The percentage of Democrats who said they would consider buying a Tesla as their next vehicle declined from 23% in August 2023 to 13% in February, the data show. Over that same period, the percentage of would-be Republican buyers grew from 15% to 26%.
Some analysts said conservatives are more hesitant to pull the trigger on an EV purchase, which might make it more difficult to turn rising Republican support into sales.
Tesla doesn’t disclose sales figures by state, but data on new-vehicle registrations collected by S&P Global Mobility suggest that sales declined sharply last year in some left-leaning metropolitan areas that have been core to the company’s growth, including New York, Los Angeles, San Francisco and Dallas, while rising in Las Vegas, Salt Lake City and Miami-Ft. Lauderdale.
