Is Elon Musk Killing Tesla's European Market?

Tesla’s European collapse isn’t about cars—it’s about Elon Musk. Tscherning, a major Danish construction firm, just returned its entire Tesla fleet, joining a growing list of European companies rejecting the brand over Musk’s polarizing politics. With Tesla’s 2025 sales in freefall and owners ditching their cars, could Musk’s persona be the company’s biggest liability? Let’s dive in.

🌍 The Brand Backlash: When CEOs Become Political Lightning Rods

• 📉 Sales plummeted 40% YoY in Q1 2025 across Europe after Musk endorsed Trump and far-right EU parties.
• 🔄 Corporate exodus: Rossmann pharmacies (2024) and Tscherning (2025) publicly cut ties, citing Musk’s "values" misalignment.
• 💬 Tscherning’s statement: “We’ve chosen to say ‘thank you for the ride’… Tesla’s political direction is increasingly hard to overlook.”
• 📉 Resale crisis: Used Tesla prices dropped 22% in Germany this year as owners rush to disassociate.

Why it matters: Europe’s EV market prioritizes sustainability and progressive branding—values now clashing with Musk’s right-wing alliances. Unlike U.S. buyers, Europeans increasingly view cars as extensions of personal ethics.

✅ The Corporate Pivot: Europe Bets on Homegrown EVs

• 🇩🇪 Tscherning switching to “European alternatives” like BMW i4 and Volkswagen ID.7—models gaining 19% market share since 2024.
• ✅ Local loyalty: EU automakers now emphasize “European values” in ads, contrasting Tesla’s U.S.-centric image.
• 💶 Government push: France and Denmark offer 15% tax breaks for companies buying EU-made EVs until 2027.

The catch: Tesla’s Supercharger network and software still outpace rivals, but brand toxicity may outweigh tech advantages.

⚠️ Tesla’s Perfect Storm: Politics, Perception, and Saturation

• 🚧 Musk’s megaphone: His 210M X (Twitter) followers amplify controversies, making Tesla a culture war symbol.
• 📉 Market saturation: Europe’s EV adoption rate slowed to 4% growth in 2025 vs. 18% in 2023—intensifying competition.
• ⚠️ B2B blow: 68% of Tesla’s 2024 EU sales came from corporate fleets—now its weakest segment.

Quote to note: “You can’t separate Tesla from Musk anymore. It’s like buying a Meta headset while hating Zuckerberg,” said Berlin-based auto analyst Clara Voss.

🚀 Final Thoughts: Can Tesla Survive Without Musk?

Tesla’s European meltdown reveals a harsh truth: In the social media age, CEOs are the brand. For Tesla to recover, it must either:

• 📉 Rebrand entirely (unlikely given Musk’s 23% ownership), or
• 🚀 Pivot Musk’s image through philanthropy or moderated rhetoric.

Meanwhile, EU automakers are seizing the moment. But with China’s BYD and Nio also vying for market share, this could become a three-way EV cold war. What’s your take—can Tesla regain trust, or is Musk’s star power now a liability?

Let us know on X (Former Twitter)

Sources: Fred Lambert. Company returns entire Tesla vehicle fleet because of Elon Musk, May 15, 2025. https://electrek.co/2025/05/15/company-returns-entire-tesla-vehicle-fleet-because-of-elon-musk/