Tesla (TSLA) sales halved across Europe last month, suggesting the backlash against CEO Elon Musk continues to impact the electric vehicle (EV) maker.
Figures from the European Automobile Manufacturers' Association (ACEA), released on Tuesday, showed that sales of Tesla vehicles dropped by 49% to 7,261 units in April, compared with the same month last year. The EV maker's market share declined to 0.7% from 1.3% in April of 2024.
ACEA data has shown Tesla's sales in Europe dropping since the start of the year, even as electric car sales grew in the region.
In April, Tesla reported global deliveries of 336,681 for the first quarter, which missed expectations of 390,342, according to Bloomberg consensus estimates. This made it the worst quarter for deliveries in almost three years.
The drop in sales comes on the heels of protests held at Tesla facilities around the world, demonstrating against Musk's political activities in heading up US president Donald Trump's Department of Government Efficiency (DOGE) and overseeing cuts to government agencies.
Musk said last month in a call after the release of Tesla's first quarter earnings that he was going to spend less time in Washington and more time at his EV company. “Starting early next month, in May, my time allocation to DOGE will drop significantly,” he said.
At Bloomberg's Qatar Economic Forum last week, Musk recommitted himself to Tesla for the next five years.
When questioned about Tesla's weakening sales in the first quarter and April in Europe, Musk said the business has “already turned around,” adding that “Europe is our weakest market” and that Tesla was “strong everywhere else.”
Read more: Stocks to watch this week: Nvidia, Salesforce, Dell, Costco and Kingfisher
While shares in Tesla have recovered some ground more recently, the stock is still down nearly 16% year-to-date.
Russ Mould, investment director at AJ Bell (AJB.L), said: “The electric vehicle maker may have got back on the road after recent quarterly results were not as bad as the market feared but the company’s competitive position, particularly outside the US, continues to look challenged.”
He added that given the fall in Tesla's European sales “came against a backdrop of a meaningful increase in European electric vehicle sales more broadly, it suggests the brand damage caused by Elon Musk’s political interventions may be lasting.
“The company may also be suffering from its lack of tyre print in the hybrid market with many motorists still wary of going fully electric.”
