Tesla (NASDAQ:TSLA) Inc. saw a significant drop in its sales in Germany last month, with a decrease of 59%. The company registered only 1,277 new cars in January, marking its lowest monthly total since July 2021, according to the German Federal Motor Transport Authority. This sales drop comes at a time when the electric vehicle market in Germany saw an increase of 54% for the month.
Tesla's sales also declined in the UK and France, indicating a downward trend in all of Europe's largest electric vehicle markets. These declines happened as Tesla CEO, Elon Musk, publicly supported Alice Weidel, the leader of the far-right Alternative for Germany (AfD) party. Musk also had confrontations with Prime Minister Keir Starmer and his Labour government in the UK. Furthermore, Musk's relationship with US President Donald Trump, who has threatened tariffs against the European Union, has been noted.
Musk, 53, had a live discussion with Weidel on his social media site, X, which was seen as an unpaid advertisement for the AfD ahead of a federal election. Later in January, Musk appeared virtually at a party rally where he urged Germans to be proud of their culture and discouraged focusing too much on past guilt, a reference to wartime atrocities under the Nazis. These remarks sparked controversy in Germany, a country where dealing with its past is a significant part of its postwar identity.
German Chancellor Olaf Scholz criticized Musk's support for right-wing parties in the European Union. Scholz called Musk's actions "really disgusting" and stated that it was detrimental to democracy in the bloc. Musk has repeatedly attacked Scholz and his government, asking for his resignation and endorsing the AfD as Germany's only savior.
Scholz expressed his disapproval of Musk's comments on Germany's history and said that Germany would continue to accept responsibility for past actions. Scholz also mentioned the recent commemoration of the liberation of the Auschwitz death camp and said that Germany is grateful to the U.S. for its role in freeing the country from the Nazis and aiding its return to democracy. Scholz expressed his anger over Musk's support for the far-right.
Musk also stirred controversy recently when he made a gesture during Trump's inauguration festivities that was compared to a Nazi salute online. The AfD, labeled as right-wing extremist by German security services, is currently polling second in nationwide surveys ahead of an upcoming snap election. The debate on immigration in Germany has intensified following a series of violent attacks by foreign-born suspects.
