Tesla is facing a wave of consumer backlash as CEO Elon Musk’s political controversies fuel a boycott movement. Once the dominant force in EVs, Tesla is now struggling with slumping sales, protests, and increasing competition. But the impact extends beyond cars—Tesla’s energy business, including solar and battery storage, is also feeling the heat.

Sales Slide in Key Markets

Tesla’s sales are dropping in key regions. In Europe, Tesla registrations plunged 45% in January 2025 despite overall EV sales surging 37%. Sharp declines were recorded in France (-63%), Germany (-60%), and the UK (-12%), with rival brands like China’s SAIC gaining ground. In the U.S., Tesla’s market share shrank from 59% to 45%, marking its first-ever annual drop in deliveries.

Musk’s Political Controversies Fuel Boycotts

Musk’s vocal support for Donald Trump’s re-election and far-right European parties has alienated many Tesla buyers, traditionally drawn to the brand for its progressive, green credentials. His involvement in Trump’s administration and controversial social media activity have further politicized Tesla’s image. Branding experts warn that Musk’s polarizing influence is “pushing many buyers to look elsewhere.”

Protests and Growing #BoycottTesla Movement

Tesla is facing street protests, with showroom demonstrations erupting across the U.S.. Activists blocked dealership entrances in cities like New York and Los Angeles, condemning Musk’s politics. In Europe and Malaysia, Tesla facilities have faced vandalism and consumer boycotts.

Impact on Tesla’s Energy Business

Beyond EVs, Tesla’s solar and battery storage division is also under pressure. Tesla’s solar installations dropped nearly 60% in 2023, and Musk’s political stance has caused some environmentally conscious consumers to rethink their choices. Tesla Energy’s struggles contrast with rising demand for solar and battery solutions from companies like Fluence Energy and Invinity Energy Systems.

Competitors Seize the Moment

Rivals are capitalizing on Tesla’s turmoil. BYD, Volkswagen, and Ford are gaining traction in EV sales, while renewable energy players benefit from Tesla’s declining solar and battery market share. As Musk dismisses the backlash, Tesla faces mounting pressure to repair its brand while fending off fierce competition.

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