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Tesla sales decline in UK, France, Sweden, Norway,

Netherlands

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Musk's political actions polarize public opinion,

affecting

Tesla's brand

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Tesla faces competition from newer EV models

By Alessandro Parodi, Nick Carey

Feb 4 (Reuters) - Tesla posted lower sales

across five European countries in January, including the United

Kingdom and France, as competitors with newer models gained on

the electric vehicle maker and polls show public opinion souring

on CEO Elon Musk.

Musk has made a high-profile foray into politics, with much of

his 2024 dominated by his financial support of Donald Trump, on

whom the billionaire CEO spent $250 million in what proved a

successful campaign to return to the White House. He has also

stirred controversy with his vocal support for far-right parties

in Britain and Germany on his social media platform X.

Tesla's UK sales fell nearly 12% in January, even as monthly

EV registrations in Europe's biggest battery-electric market

surged to a record, according to data published by New

AutoMotive on Tuesday.

That follows a 63% decline in January sales for Tesla in France,

drops of 44% and 38% in Sweden and Norway, and a 42% fall in the

Netherlands. In California, the largest U.S. car market with

more than 1.7 million vehicle registrations in 2024, Tesla sales

fell by 12%.

In 2024, Tesla posted its first-ever annual decline in

deliveries, though it is still the leading EV seller in the

United States. Musk said he would soon launch long-awaited

cheaper EVs in 2025, and the company has increased its focus on

autonomous driving technologies.

Tesla did not immediately respond to a request for comment

on its sales.

The company fell from the No. 2 spot for EV sales in Britain

in January 2024 to the No. 7 spot behind Volkswagen,

Mercedes and Stellantis' ( STLA ) Peugeot, which all

posted higher sales.

Several polls show consumers have mixed views of Musk. A late

January survey conducted by EV review website Electrifying.com

showed that 59% of British owners of EVs, and those intending to

buy such a vehicle, said Musk's influence would deter them from

buying a Tesla.

"Musk's influence on the brand is becoming increasingly

polarising, pushing many buyers to look elsewhere," said

Electrifying.com CEO Ginny Buckley. "With over 130 mainstream EV

models now available in the UK - compared to just 25 in 2020 -

competition has never been fiercer and Tesla is already feeling

the pressure."

European politicians have pushed back lately against Musk's

recent comments, which include the amplification of far-right

commentators on X. Some accounts have quit the platform, citing

the spread of misinformation. Musk has dismissed criticism

against him as an affront to democracy and free speech.

The Tesla CEO has become a vocal supporter of the far-right

Alternative for Germany (AfD) ahead of February elections. He

recently told an AfD audience just before the 80th anniversary

of the liberation of the Auschwitz concentration camp that

Germans should not feel guilt for the sins of their

great-grandparents.

The share of Swedes with a positive view of Tesla fell to

11% in a Novus survey conducted after Trump's inauguration, down

from 19% in a similar poll conducted Jan. 15-17, according to

Swedish news agency TT. Those with a negative view jumped to 63%

from 47%, TT reported.

The chief executive of research group New AutoMotive, Ben

Nelmes, told Reuters that Tesla's problems stem less from Musk's

actions and more from its failure to launch a new mainstream

model since the Model Y in 2020, while rivals, including Chinese

EV makers, have fresher products on the market.

"It's not due to Musk's views or British motorists' views

about Musk - they stopped innovating after the Model Y," he said

of Tesla.

Despite these factors, the company's stock has continued to

outperform the market, with shares more than doubling over the

past year. The stock currently trades with a forward

price-to-earnings ratio exceeding 131, ahead of not just legacy

carmakers but also high-flying tech stocks with P/E ratios in

the 20s, according to LSEG data.