Tesla Inc (NASDAQ:TSLA) stock was marked down 1.6% ahead of Monday’s opening bell, following fresh data showing another sharp decline in car sales across much of Europe.
May marked the fifth straight month of falling registrations for the company, with steep drops in markets including Sweden, Portugal, Denmark and France.
The downturn has been blamed on an ageing model lineup and public backlash against Elon Musk’s political activity, including his alignment with right-wing figures in the US and Europe.
One bright spot was Norway, where sales surged 213% thanks to early deliveries of the updated Model Y.
Analysts say the Norwegian rebound highlights the need for Tesla to keep refreshing its product range to stay competitive.
While the company is offering incentives across Europe, such as price cuts and interest-free loans, rivals like BYD, Volkswagen and Porsche are gaining ground.
Deliveries of the new Model Y are expected to ramp up in the coming weeks across major European markets.