Musk’s “Nazi Salute” Fallout? Tesla Sales in Germany Drop by 59%

CEO Elon Musk's far-right political actions linked to Tesla’s sharp decline in sales / AFP

Tesla’s sales in Germany plummeted nearly 60% in January 2025, marking a dramatic setback for the electric carmaker in one of its key markets. The company’s performance has been increasingly affected by the controversial political actions of CEO Elon Musk, particularly his far-right political affiliations and statements. These actions have been identified as a significant factor behind the decline in Tesla’s sales, as well as a broader negative impact on its global image.

According to recent data from the German Federal Motor Transport Authority (KBA), Tesla's sales dropped to just 1,277 vehicles in January, a 59% decrease compared to the same period last year. This is the lowest monthly sales number for Tesla in Germany since July 2021. Despite a general recovery in the German electric vehicle market, Tesla’s share of new car sales took a significant hit, falling from 1.7% in January 2024 to just 0.6% in January 2025.

Tesla’s poor performance wasn’t limited to Germany alone. Bloomberg reported that the company also saw a significant decline in sales in France and the UK, with sales dropping by 63% and 12%, respectively. Even in California, a state known for its progressive values, Tesla faced a fourth consecutive quarter of declining sales by the end of 2024.

Elon Musk’s political views and actions are being increasingly linked to these sales declines. The CEO, who has been known for his right-wing political stances, drew attention for his involvement in supporting the Alternative for Germany (AfD), a far-right political party. In late January 2025, Musk delivered a video address at an AfD rally in Halle, Germany, where he expressed support for the party's stance against immigration and its criticism of Germany's historical reckoning with World War II. Musk controversially stated that Germany had been "too focused on past guilt," likely referring to the Holocaust and the Nazi regime’s crimes.

This statement came just days before International Holocaust Remembrance Day on January 27, which honors the six million Jews killed during the Holocaust. Musk’s comments were widely criticized, with many accusing him of trivializing Germany’s war history. His public appearance at the rally, combined with his controversial political rhetoric, has led to mounting backlash, especially in Germany and Poland.

In Poland, calls for a Tesla boycott surfaced. Slawomir Nitras, Poland's Minister of Sports and Tourism, urged consumers to stop purchasing Tesla vehicles, calling for “serious and strong actions” against the company. These statements are part of a broader backlash against Musk's political involvement and statements in Europe, especially as the continent grapples with its past and the memory of Nazi atrocities.

Experts are now weighing in on the potential long-term damage to Tesla’s brand reputation. Ferdinand Dudenhoeffer, director of the German Automotive Research Center, stated that Musk’s actions are “extremely harmful” to Tesla. He emphasized that no company wants to be associated with the image of Nazism, and Musk’s political activities could irreparably damage the perception of the company, especially in Germany, a country that is deeply sensitive to its World War II history.

While supply shortages and other logistical challenges might also have contributed to the drop in sales, industry analysts argue that Musk’s political stances are a major factor in Tesla’s underperformance. The company’s image as a leading electric car manufacturer is being increasingly undermined by Musk’s controversial statements, particularly in key European markets where Tesla has historically seen strong demand.

On Wall Street, Tesla's stock reflected the mounting concerns, with the company’s share price closing 3.58% lower at $378.17 on the New York Stock Exchange. This marks a significant decrease, adding to the growing skepticism about Tesla’s future growth prospects amid Musk’s polarizing leadership.

In conclusion, Elon Musk's increasingly extreme political views are taking a toll on Tesla, with the company’s sales and stock price both suffering as a result. As the CEO continues to make headlines for his controversial positions, the long-term impact on Tesla’s brand, especially in Europe, remains uncertain. The company’s once strong position in the electric vehicle market is now under serious scrutiny, with many questioning whether Musk’s leadership is a liability for the company moving forward.