Tesla has witnessed a sharp decrease in its sales in Germany, as it declined by 76% during the past month, in light of the preoccupation of its CEO Elon Musk with his political activity and his support for President Donald Trump’s economic policies.
This sharp decline comes amid wider fears in the global markets of the repercussions of the new American commercial policies, as Trump has announced a significant increase in customs tariffs, which raised disturbance in the stock market and increased trade tensions between the United States and major trading partners such as Canada, Mexico and China.
Political and economic repercussions on Tesla
With increasing trade tensions, Tesla faces major challenges in the European market, as the impact of US protectionist policies was reflected on electric car sales.
Germany, which is one of the largest European electric cars markets, has recorded a sharp decrease in demand for Tesla cars, at a time when competition from local companies such as BMW, Mercedes, Volkswagen, which offers electrical models at competitive prices.
Musk’s preoccupation with politics and his public support for Trump raised investor concerns, as this company is seen as directly affected by geopolitical and economic turmoil.
Trump’s policies and repercussions on Tesla
In his speech to Congress, Trump defended his commercial policies, considering that the imposition of customs tariffs is part of his plan to “rebuild the American economy”. He said that these measures will lead to “restoring jobs inward”, but he admitted that this could cause “some economic turmoil in the short term.”
In light of these policies, Tesla found itself in a complex situation, as it relies heavily on international markets, especially Europe and China, which may impose counter definitions on American products, which may increase its decline in their global sales.
Market disturbance
Tesla shares declined significantly after Trump announced the new tariffs, amid investor concerns about the impact of these policies on the company’s ability to compete in international markets.
Wall Street also showed a negative reaction, as the S & B 500 index has decreased to its lowest level since the elections, with fears of the escalation of the trade war.
On the other hand, the US Department of Commerce announced that it may study “grant some facilities” to companies affected by the definitions, but the ambiguity still surrounds the upcoming steps, which leaves Tesla and other major American companies in a state of uncertainty about the future of their global business.
A mask between politics and business
Musk faces increasing criticism for his involvement in politics, where Trump’s speech in front of Congress personally attended and received a sharp applause from Republicans when the president spoke about his plans to reduce government spending and federally reduce the workforce.
This also led to the escalation of fears of a new trade war with China, which raised its speech against the White House after the US fees on Chinese imports were doubled to 20%.
On the other hand, Musk was subjected to harsh criticism from the Democrats, some of whom have raised banners on phrases such as “Mask Makka” and “forgery” in reference to accusations related to his financial and administrative policies.
