Tesla's European Sales Slump Amid Controversy and Competition

Tesla's sales in France and Sweden faced declines for a third consecutive month, with controversies around Elon Musk's political affiliations potentially contributing to the slump. The electric car brand's challenges are compounded by a competitive market with cheaper models from rivals, especially Chinese EV makers.

Tesla's electric vehicle sales dropped in France and Sweden for a third straight month, marking a challenging first quarter in these regions since 2021, according to Tuesday's data. The dip coincides with CEO Elon Musk's controversial ties with far-right parties in Europe, further impacting Tesla's market presence ahead of the Model Y SUV launch.

Analysts anticipate forthcoming data to reflect a global delivery outlook for Tesla, amidst weakened consumer sentiment. Official figures showed a steep decrease in sales, with Tesla registering 3,157 units in France and 911 in Sweden in March, reflecting a significant drop from last year.

The brand's market share in France fell to 1.63% as it faced growing competition from brands like BYD and other Chinese EV makers, capturing a larger market portion. Challenges persist for Tesla in Europe, exacerbated by its limited model lineup and Musk's political controversies, which have even led to acts of vandalism against the brand.

(With inputs from agencies.)