Tesla is facing significant challenges in Europe, particularly in France and Germany, due to the controversies surrounding Elon Musk. In France, Tesla sales have plummeted by 50%, and owners report experiencing vandalism and harassment. The situation is similar in Germany, where 35% of fleet managers are reconsidering their Tesla purchases, citing the 'Elon Effect' as a major concern. Despite some buying decisions being made independently of Musk's actions, the brand's image has undeniably suffered.
Elon Musk's political activities and public behavior have been detrimental to Tesla's reputation, leading to a decline in new car registrations. Industry experts criticize Tesla's pricing strategy and highlight the increasing competition from brands like VW, Skoda, and BMW. While the used car market has not yet shown significant effects of the 'Elon Effect,' Tesla's residual values are dropping. The FBI has also issued warnings about potential attacks on Tesla properties in the US, further complicating the company's situation. Overall, Musk's actions have created a challenging environment for Tesla, impacting its market position and customer perception.
