Tesla Sales Plummet as Owners Offload Cars Amidst Backlash Against Elon Musk’s Politics” or “Tesla Market Hits Record High as UK Drivers Flee Elon Musk’s Support for Far-Right Parties
Summary
British drivers are offloading their Teslas in record numbers amid a growing political backlash against Elon Musk’s support for far-Right European parties and his closeness to Donald Trump. The number of second-hand Teslas advertised on Auto Trader increased significantly between December and January, with prices falling heavily as more owners put them up for sale.
The Rise in Second-hand Tesla Sales
The rise in listings between December and January was the biggest month-on-month increase on record, with 4,822 second-hand Teslas advertised on Auto Trader in February. This represents a 36% increase from December and a staggering 70% increase from the same month last year. The average price of a three-year-old Model 3 on Auto Trader fell by 17% year-on-year, indicating that more owners are putting their cars up for sale.
Growing Competition Among Electric Car Makers
Tesla faces growing competition among electric car makers, which may be contributing to the declining sales figures. Other companies such as BMW and Lexus offer comparable models at lower prices, making Teslas less appealing to potential buyers. Additionally, the lack of new Tesla models in the market for several years has led to a decline in demand.
The Impact of Elon Musk’s Politics
Elon Musk’s support for far-Right European parties and his closeness to Donald Trump have divided opinion among car owners and enthusiasts. Some have publicly expressed their dissatisfaction with Musk’s politicalviews, with one senior figure at a majorcar-leasing company stating that "some people cancelling their orders explicitly because of Musk’s politics." However, others argue that it is difficult to determine how much Musk’s politics are contributing to the declining sales figures versus the lack of new models in the market.
Interest in Tesla Falls Amidst Musk’s Political Pronouncements
Thom Groot, of the Electric Car Scheme, which sets up salary sacrifice programmes for companies, said that they have seen interest in Tesla fall as Mr. Musk’s political pronouncements have grown. He stated that "as a proportion of all inquiries, interest in Teslas has roughly halved since November’s US election." This suggests that Elon Musk’s public stance on certain issues has deterred some potential buyers from purchasing a Tesla.
UK Sales Still Strong Despite Declining Interest
While sales of second-hand Teslas have plummeted in the UK, new Tesla sales rose by 21% in February. However, this increase was largely due to an unusually strong month for electric car demand as buyers pushed to avoid a tax rise on new electric vehicles (EVs). In contrast, wider EV sales were up 41.7%, indicating that while interest in Teslas might be waning, the overall market is still growing.
Conclusion
The political backlash against Elon Musk’s support for far-Right European parties and his closeness to Donald Trump has led to a decline in interest in Tesla among car owners. The rising tide of second-hand Teslas being sold on Auto Trader serves as a testament to this shift, with prices falling heavily due to increased market competition. As other companies offer comparable models at lower prices, it remains to be seen whether Tesla will regain its footing in the ever-evolving electric car market.
