Elon Musk’s focus on robots and pay package deepens Tesla’s sales slump

Elon Musk is once again under scrutiny as Tesla faces a sharp sales decline across key global markets, even while he doubles down on the company’s robotics ambitions and his record-breaking compensation plan. 

In the major markets, including Europe, China and the US, Tesla’s momentum is slowing at a pace that has alarmed analysts who believe the company’s core focus has drifted.

In Europe, sales of Tesla vehicles plunged 48.5% year-over-year in October, contributing to an overall 30% drop for 2025 so far, despite EV sales across the broader auto sector rising. 

Globally, Tesla deliveries are projected to fall 7% this year, compounding last year’s modest decline. 

The slump extends the turbulence that began when Musk’s political commentary triggered public backlash in several markets, particularly in Europe.

Notably, once the world’s best-selling vehicle, the Tesla Model Y has lost ground as competitors introduce a flood of lower-priced EVs and hybrids, many under $30,000. 

Moreover, with only two mass-market models in its lineup, Tesla is struggling to keep pace. 

The company recently introduced a cheaper, pared-down Model Y in hopes of stabilising demand.