Has Tesla Reached Its Peak? Exploring the Decline in Sales and Brand Reputation
Tesla's journey is a captivating tale for those invested in the electric mobility revolution. For years, the company dominated the EV market with its iconic Model S, Model X, and the best-selling Model 3 and Model Y. Undoubtedly, Tesla revolutionized the global electric vehicle landscape and now aims to do the same with autonomous driving, introducing the Full Self Driving package, soon to be subscription-based.
However, an intriguing question arises: Has Tesla's car sales peak passed, or is this a temporary phase as the company transitions from human-controlled cars to the highly anticipated robo-cabs?
Nat Bullard, a former Bloomberg NEF journalist and now an analyst and consultant, presents a compelling visual narrative through a series of graphs. These graphs paint a clear picture of Tesla's sales trajectory.
The first graph showcases Tesla's total sales by quarter (in blue) and a running average (red line). It suggests that Tesla's sales peaked in late 2023, just before the release of the upgraded Model 3.
There was a record sales quarter in 2025 (September) after the upgraded Model Y's release, but 2025 sales are down by 140,000 compared to the previous year, as Bullard notes.
The second graph highlights a significant decline in sales, primarily in Europe, where total sales have dropped by nearly a third since the late 2023 peak. In 2025, European sales are down by over 100,000 compared to 2024.
What could be the reasons behind this decline? Several factors are cited: The anticipation and rollout of the revised Model 3 and Model Y, increased competition from lower-priced Chinese EVs, especially BYD, which now delivers more full battery electric cars than Tesla, and the removal of EV rebates in the US.
But here's where it gets controversial... One factor that Tesla supporters and shareholders prefer to avoid discussing is the 'Elon factor' and its impact on the company's brand reputation. Elon Musk's vocal support from Donald Trump in the US and far-right parties in Europe, particularly in Germany and the UK, has raised eyebrows.
In this context, Bullard's next graph is particularly intriguing. It showcases Tesla's reputation rankings in the US over the last six years. In 2021, Tesla ranked an impressive 8th according to pollster Axios Harris. However, its reputation has taken a nosedive, landing at 62 in 2023, 63 in 2024, and a staggering 95 in 2025.
The Axios Harris poll rates the 100 most visible companies in the US. Axios reported that Tesla ranked 'dead last' in 'character' and near the bottom in 'ethics' and 'citizenship'. Six other automakers ranked higher, with Toyota at No. 4 and Ford at No. 60.
Axios also noted that other companies associated with Musk, such as Spacex (86th) and X (98th), fared poorly. The Trump Organisation ranked 99th.
These rankings are specific to the US, but it's not a stretch to assume that Musk's political interventions could have a similar impact on Tesla's brand reputation in other countries.
This might explain, at least in part, why Tesla, despite producing what many rightfully claim to be the best-value EVs in the world, is experiencing a sales slump.
Note: A big shout-out to Nat Bullard's exceptional annual presentation, '200 Graphs on Climate and Energy and Transport', which can be found here.
Added note: The author of this story owns two Tesla EVs.
Giles Parkinson, the founder and editor of The Driven, also edits and founded Renew Economy and One Step Off The Grid. With nearly 40 years of journalism experience, he was formerly the business and deputy editor of the Australian Financial Review and is a proud owner of a Tesla Model 3.
