The slump is linked to brand damage stemming from CEO Elon Musk’s political ties with U.S. President Donald Trump, which sparked protests at Tesla outlets in March.
Tesla’s car sales in Europe dropped sharply by 49% in April, with just 7,261 units sold, according to the European Automobile Manufacturers’ Association (ACEA).
This decline occurred despite an overall 34.1% rise in battery electric vehicle sales across the continent.
The slump is linked to brand damage stemming from CEO Elon Musk’s political ties with U.S. President Donald Trump, which sparked protests at Tesla outlets in March. Sales between January and April also fell nearly 40% year-on-year.
While Tesla introduced an upgraded Model Y this year, its lineup remains dated without new mass-market options. Meanwhile, competition from established automakers and Chinese firms like BYD—now outselling Tesla in Europe—is intensifying.
Hybrid vehicles, which make up over 35% of Europe’s car market, are gaining ground. Tesla, however, sells only fully electric models.
Despite investor concerns, Musk said he will continue leading Tesla, dedicating “a day or two per week” to government duties.