Tesla Inc (NASDAQ:TSLA) slump in European sales continued in May, deepening concerns over the brand’s image and competitive position in a fast-evolving market.
The company’s new registrations fell 27.9% year-on-year, despite overall battery-electric vehicle (BEV) sales across Europe rising by 27.2%, according to data from the European Automobile Manufacturers Association.
Tesla's share of the region's car market dropped to 1.2%, down from 1.8% a year earlier, marking five consecutive months of decline.
Industry analysts point to growing competition from cheaper Chinese models and a consumer backlash against Elon Musk’s political affiliations as factors behind the drop.
Tesla’s updated Model Y has yet to reverse its sliding fortunes as rivals rapidly expand their EV lineups.
BYD, the Chinese EV maker, nearly matched Tesla’s registrations in May after outselling it in April.