Tesla sales plunge amid Musk controversies as EV market expands

In the Netherlands, the sale of fully electric vehicles increased in February despite an overall decline in new car registrations. Industry organizations BOVAG, RAI Vereniging, and RDC reported that 10,174 electric cars were sold last month, a 22 percent increase from a year earlier. However, Tesla, long a leader in the EV market, saw a 24 percent drop in sales, with only 983 units sold.

Tesla's decline comes amid heightened public attention on CEO Elon Musk, who has been involved in political controversies. Under Musk's leadership, the advisory board DOGE has pushed for significant budget cuts in U.S. government agencies, leading to the dismissal of hundreds of employees from organizations such as USAID and the Environmental Protection Agency (EPA). Musk has also voiced support for the far-right Alternative für Deutschland (AfD) party in Germany’s elections.

A BOVAG spokesperson cautioned against drawing premature conclusions about whether Musk’s political stance is affecting Tesla’s image. The spokesperson noted that competitors offering more affordable electric models have gained ground. The Kia EV3 led February’s sales rankings, followed by the Citroën C3, while Tesla’s Model Y and Model 3 remained in the top five.

The trend is not limited to the Netherlands. The French automotive group Plateforme Automobile reported a 26 percent year-over-year drop in Tesla sales in February, following a 60 percent decrease in January.

Meanwhile, Tesla’s stock lost 13 percent of its market value last week after reports that the company’s European Union sales had halved in January. Analysts point to both Musk’s political actions and a slowdown in production due to updates on the Model Y assembly line as contributing factors.

The Dutch auto market as a whole saw an 8.3 percent decline in new registrations last month, with a total of 27,820 new vehicles recorded. Despite the drop, electric vehicles accounted for 36.6 percent of all sales, while hybrids remained the most popular category at 44.9 percent.