Tesla sales have fallen by a staggering 50% in the first three months of the year as the backlash over Elon Musk’s role in the US government continues. Industry data shows sales of electric cars fell to just 36,000 units in the first quarter of 2025 in 27 European countries according to the European Automobile Manufacturers’ Association.

Sales in March alone fell by 36%, representing the biggest fall in sales of any major car manufacturer included in the report, despite the overall rise in electric vehicle sales. It comes after the Tesla boss pledging to “significantly” cut back his role in the US government following the company’s sharp decline in popularity. Musk has led the unofficial Department for Government Efficiency (Doge) since Donald Trump’s inauguration, overseeing a ruthless cut to government spend in an array of sectors.

Earlier this week, the company reported a 71% drop in profits, something it blamed on “changing political sentiment.”

During Musk’s time in the US government, Tesla showrooms have been subjected to vandalism and protests, actions which President Trump labelled as “domestic terrorism.”

In a statement Tesla said: “Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers.”

“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”

Earlier this year, Musk faced calls to resign from one of the company’s earliest investors due to concerns over his divided focus and political ties.

Ross Gerber called for the Tesla founder to either commit fully to the company or resign to allow a new leader to step in.

He said: “I think Tesla needs a new CEO.

“The business has been neglected for too long. There are too many important things Tesla is doing, so either Elon should come back and focus entirely on Tesla, or he should step down and let someone else lead.”

Musk was one of President Trump’s biggest supporters throughout his election campaign, investing large money in voter incentive schemes and using his X platform to amplify Republican messaging.

However, he has courted controversy since Trump’s victory, most notably following his inauguration where he was accused of making a Nazi salute on stage.

In Germany, a country which has seen some of the sharpest falls in sales, Musk has been a vocal supporter of the far-right Alternative for Deutschland (AfD) party, further adding to his burgeoning divisive public image.