Ahmad Assiri has offered some reasons for Telsa’s recent sales slump.
Elon Musk’s “political engagement” is having a detrimental impact on the Tesla brand, according to an expert.
The electric vehicle company saw sales slump by 40 percent across Europe in February, and Ahmad Assiri, a research strategist at the brokerage Pepperstone, believes that Tesla is now facing a significant challenge, amid Musk’s close relationship with US President Donald Trump.
Assiri told Sky News: “Musk’s political engagement has triggered a significant backlash, notably evident through explicit calls for boycotts, negatively impacting Tesla’s reputation among substantial segments of consumers and investors, particularly given the implicit political biases.
“This situation further complicates management’s position in handling this adverse environment.”
Assiri suggested that Tesla and BYD, the company’s Chinese electric vehicle rivals, are currently on different trajectories.
The industry expert actually observed that there’s “intensifying competition” across the electric vehicle market.
Assiri said: “Concurrently, China’s BYD continues to gain considerable traction in the EV market, recording rapid growth and becoming increasingly attractive to consumers and investors alike.
“This intensifying competition directly threatens Tesla’s market share.”
New data, from the European Automobile Manufacturers Association, has revealed that Tesla had sold 42.6 percent fewer cars in Europe in the year to date.
The company has also seen its share of the European market decline, going from 2.8 percent 12 months ago, to 1.8 percent now.
Elon Musk’s ‘political engagement is undermining Tesla’
