Electric dreams, political nightmares: Tesla is losing the market because of Elon Musk

RU

Falling in a growing market

Tesla’s troubles are an outlier: the global EV market has continued to show steady growth, even as its most recognizable brand continues to gain pariah status. In 2024, 17 million electric vehicles were sold worldwide, meaning one in every five cars purchased around the globe was electric. By 2035, EVs are projected to make up 70% of global car sales. Today, there are around 600 EV models on the market, and by 2028, that number is expected to reach 1,000.

Growth is being driven by government support for green transport and restrictions on internal combustion vehicles in major cities. In Norway, 95% of cars sold in 2024 were electric or hybrid; in Sweden, 60%; in the Netherlands, 30%; in France and the UK, 25%; and for the first time, EVs accounted for over 20% of car sales in the U.S.

The biggest EV buyer in terms of volume — not domestic market share — is China, accounting for 60% of global sales, followed by Europe (25%) and the U.S. (10%).

As expected, competition among EV producers is intensifying. Chinese companies like BYD, Nio, and XPeng are actively expanding overseas. European automakers — BMW, Mercedes-Benz, Volkswagen, Renault, and Stellantis — are ramping up investments and releasing new EV models.

Tesla, once highly popular in Europe and a beneficiary of state support, is now losing favor. Since Elon Musk aligned himself with Donald Trump and began publicly supporting far-right politicians on the continent, both consumers and investors have begun to “vote with their wallets.” In 2024, Tesla's European sales dropped by 10.4%, to 328,000 units. After Trump’s presidential victory and Musk’s increased political activity, the decline accelerated: in Q1 2024, sales were down 8%, but by January 2025, the drop had reached 45%.

After years of global dominance, Tesla in 2024 ceded its leadership position to its main rival, China’s BYD. Tesla produced 1,773,443 electric vehicles, while the Chinese automaker made 1,777,965. Tesla’s sales also declined: Musk’s company sold 1,789,226 vehicles, down from 1,808,581 in 2023. Its stock price has taken a hit, with Tesla’s market cap falling from $1.4 trillion at the end of 2024 to $895 billion at the time of this article’s publication. Tesla’s market share in Europe — where it had dominated for the past decade — is shrinking.