Is Elon Musk's Politics Costing Tesla? Questions & Concerns Arise As EV Maker's January Sales Drop

Elon Musk is not just the richest man on earth, but arguably, one of the most influential and powerful people, as he holds a close tie with the government of the biggest economy in the world, the United States.

This influence of the man worth nearly USD 400 billion has brought back advertisers, who once left X, after Elon Musk's infamous takeover.

However, whether this influence and his extensively right-leaning and regressive rhetoric and tolerability of the same, is something that remains to be seen.

This comes at a time, when his EV maker company Tesla, the biggest source of his revenue, once again started another year with a drop in its sales.

A Repeat Of 2024?

The company's January sales dropped compared to its sales last year, and especially compared to the last few months of 2024.

However, the company experienced a similar lull in its prospects at the beginning of 2024 as well. That year, the company started behind BYD, with a drop in total cars shipped and the total profit earned.

The company stocks also saw a monumental decline in its prospects at the beginning of the year.

However, those prospects changed once the year progressed further, with Tesla taking over BYD, which saw its share in the market drop.

As pointed out by a CNN report, this usually happens due to the company's greater push towards year-ending sales, which eventually depletes the appetite, at the beginning of the new year.

What is Different About This Turn?

One of the biggest highlights of the turn of events in this year's sales numbers is the drop of sales in California. California, being the richest US state, apart from consumers, who would invest in EVs has bought less Elon Musk's cars.

In the state, which is known as a liberal and Democratic bastion, something that currently sits opposite to Musk's orientation, Tesla sold 12 per cent fewer cars.

Another important element is sales in Europe. Musk, over the past few weeks and months, has blatantly tried to intrude into the affairs of many Euroepan nations, which in turn has drawn sharp and stark condemnation from these countries.

The Europe Problem

Now, when we look at the company's sales in Europe Tesla sold a mammoth 75.4 per cent fewer cars in Spain this January.

Spain, mind you is run by a left-leaning government, as itself is a key player in the industry, being the manufacturing ground for Chinese EVs.

Cataclysmic drops in sales were also reported in France, where Tesla's sales numbers slimmed by over 60 per cent. In Sweden, the sales dropped 46 per cent and the Netherlands bought 42.5 per cent fewer units from Tesla.

Some commentators claim, that it is perhaps a little too early to correlate this Musk, but, if the trend continues, then there is no doubt, that fingers would be raised against Musk.

When we look at the equity markets, Tesla shares have dropped by USD 70.66 or a mammoth 16.57 per cent of its value in a month, taking the overall value to USD 355.84 per piece.