Elon Musk's electric vehicle sales have fallen for the fourth month in a row as consumers around the globe abandon the multi-billionaire.

13:00, Tue, May 27, 2025 | UPDATED: 13:01, Tue, May 27, 2025

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Elon Musk's Tesla sales have declined steeply this year (Image: Getty)

Tesla sales have nosedived by nearly 50% in a blow to Elon Musk, as consumers reject his venture into politics and turn to European and Chinese competitors instead. The world's richest man's prominent electric vehicle company recorded a 49% drop in sales in April compared to last year, marking the fourth straight month of decline despite a rise in European battery-electric car sales by 27.8%. As well as a downturn in the company's popularity amid its CEO's increasing involvement in US politics, a muted reception of Tesla's new Model Y and growing competition from China and Europe are also thought to be linked to the negative trend.

Europe poses a particular threat to the US-based firm, according to new data from the European Automobile Manufacturers Association (ACEA), with Tesla's market share on the continent dropping from 1.3% to 0.7% in the last 12 months. "For Tesla, data points to persisting challenges in the perception of the American brand by European customers," market analysts at XTB said.

President Trump Speaks Alongside Tesla Vehicles At The White House

Elon Musk's involvement in US politics could be putting electric car buyers off Tesla (Image: Getty)

"Trump's [recently] announced retaliatory tariffs, which would significantly impact international trade, may have affected consumer sentiment," they added.

"An additional factor is Elon Musk's image problems, which also deter customers from purchasing the cars. Among less social reasons for the sales decline, one can look for a lack of innovation in the products offered. The absence of a new line of Tesla models may be leading customers to switch to other manufacturers."

"Tesla is still valued primarily on hopes regardng the inovativeness of future technologies," the experts said. "But for now, the company remains an electric car manufacturer, which constitudes its core business.

"If the erosion of sales continues, the company may not be able to sustain high multiples until its major technological development plans are realised."

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The company has come under fire from protestors and boycotters since Musk waded into a senior role in Donald Trump's administration - but the US President's tough stance on tariffs could have caused a downturn in sales regardless, as European buyers responded by dodging American brands.

Tesla's European sales also fell by around 39% in the first three months of 2025, dropping to around 61,320, and the company also reported a 71% decline in profits, something a spokesperson blamed on a "changing political sentiment".

Musk clashed with Trump's White House over the tariff policy, suggesting earlier this year that he "generally [believes] low tariffs are a good idea". The Space X owner recently announced that he was stepping back from his role in the US Department of Government Efficiancy (DOGE) to "allocate far more time" to his electric vehicle company.