Motorists across Europe may be turning their back on Tesla after Elon Musk’s foray into politics, but in the UK we can’t get enough of his electric vehicles.
Figures released this week by the European Automobile Manufacturers’ Association show that Tesla sales plummeted 40 per cent in Europe in February compared to a year earlier, despite a 26 per cent rise in sales of battery electric vehicles over the same period.
Yet the UK has bucked the trend, with Tesla sales up 20 per cent in February. Here, the Model Y and Model 3 are the two most popular EVs after the Mini Cooper, according to the Society of Motor Manufacturers and Traders. Sales for March, to be released by the SMMT next week, are expected to show more positive sales figures in the UK for the US-listed car maker.
“I think Musk has done some reputational damage to the brand but it is still a good product,” said Fraser Brown, an analyst from MotorVise, a consultancy.
While Teslas used to be the car of choice for the affluent inner-city voter, there has been a consumer backlash in Europe and the United States since Musk took a prominent role in President Trump’s second administration.
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There have been protests outside Tesla dealerships around the world and vehicles have been damaged and destroyed in what Trump has described as “domestic terrorism”.
Some Tesla owners have resorted to slapping “I bought this before Elon went crazy” stickers on their cars to express their disgust at Musk — once lauded as a visionary for revolutionising the EV market — for cosying up to Trump.
The “Tesla Takedown” movement is holding a global protest on Saturday, including a rally outside a Tesla dealership in Park Royal, west London. Its motto is: “Sell your Teslas. Dump your stock. Stop Musk now.”
Tesla’s market capitalisation, which peaked after Trump was re-elected in November, has plunged more than 50 per cent since then. The company is now worth $852 billion.
Wedbush, a wealth management and advisory firm, said that Tesla and Musk had become a “lightning rod of controversy” and the carmaker a focal point for anger at the Trump administration.
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“The anti-Musk and brand issues are clearly at play and a major factor in this weak 1Q delivery number,” it said.
Daniel Ives, an analyst at Wedbush, said that Tesla and Musk should be able to ride out the storm. He said the company’s global prospects were still bright despite the challenging circumstances.
“This continues to be a moment of truth for Musk to navigate this brand tornado crisis moment and get on to the other side of this dark chapter for Tesla, with much better days ahead,” he said.
Tesla’s reputation in the UK is not immune from the Musk backlash.
Brown said there was a direct correlation between Musk’s controversial comments and a drop in value for Tesla cars, at least in the second-hand market. This presents a bargain for would-be owners, the MotorVise analyst said. “They have become obscenely good value.”
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He said: “When Musk opens his mouth and starts shooting his mouth off, people don’t like it and Tesla prices drop. We saw used car prices for Tesla drop 15 per cent in January.”
Rival car brands such as MG, BMW or Porsche did not experience similar price drops in January, according to MotorVise.
However, Brown said that Teslas remained popular in Britain — the third largest market for electric vehicles in the world after China and the US. The EV market in the UK grew almost 42 per cent in the year to February, even outstripping Tesla’s own 20 per cent growth here.
This continuing demand is especially the case with second-hand Teslas, according to Auto Trader, the online marketplace.
A brand-new Tesla can retail for £40,000 from a Tesla dealership but bargains can be found second-hand. A 2019 Tesla Model 3 can be bought on Auto Trader for less than £10,000.
“Tesla used to be an aspirational EV for progressive voters. But at £10,000 there are many more potential buyers,” said Auto Trader’s head of insights, Marc Palmer. “They are much more affordable than they used to be and they are good value for money.”
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Palmer says there are three times as many inquiries on Auto Trader for the Tesla Model 3 than any other EV.
“There is a pragmatic buyer out there who always wanted a Tesla and they can now buy one, regardless of their politics,” said Palmer.
Brown pointed out that Tesla’s public charging infrastructure of 77,000 superchargers in the UK was well ahead of competitors’. “The Tesla is the logical choice for a lot of EV buyers. If you’re buying with your brain, not your heart, you will still buy a Tesla.”
Traditionally, February is a quieter month for car sales, as buyers wait to get new registration plates in March.
Industry experts said that March might see a “mini-bubble” of EV sales, because from April 1 an expensive car supplement will apply to EVs valued at more than £40,000.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said that applying the supplement to EVs for the first time was disappointing, given that affordability remained a major barrier to the take-up of battery electric vehicles.
“Given manufacturers are having to incentivise EV buyers heavily and unsustainably as natural demand is well below market targets, this is the wrong measure at the wrong time,” he said.
