Tesla Inc (NASDAQ:TSLA) is struggling in Europe, where its sales dropped 49% in April compared with the same month last year, even as demand for battery-electric vehicles rose nearly 28%.
The steep decline marks the Silicon Valley EV maker's fourth consecutive monthly fall in registrations and reflects growing reputational and competitive challenges in the region.
While overall car sales in the European Union, UK and EFTA slipped just 0.3%, electric and hybrid models made up nearly 60% of new registrations, up from under 48% a year ago. Yet Tesla’s share of the market halved to just 0.7%.
The decline comes amid criticism of Elon Musk’s political views and intensifying competition from Chinese rivals, which are gaining ground with lower-cost models. The recent update to Tesla’s best-selling Model Y has failed to reverse the trend.
The downturn adds pressure on Tesla as European carmakers face cost-cutting demands, trade uncertainty and a shifting global auto landscape.