Tesla Faces Challenges in Europe Amid Political Backlash

Tesla is encountering declining sales in Europe, facing competition from Chinese EV makers and backlash against CEO Elon Musk's political involvement. Sales in key markets like France and Sweden have hit their lowest in years. Political activism and vandalism against dealerships are also affecting Tesla's brand image.

Tesla is grappling with declining sales figures in key European markets, according to new data released on Tuesday. The decline reflects growing competition from Chinese electric vehicle (EV) manufacturers and a backlash against CEO Elon Musk's political activities, which have stirred controversy across the continent.

In March, Tesla's sales in France and Sweden reached their lowest levels in years, marking a third consecutive month of decline. Some Tesla dealerships have been vandalized in response to Musk's perceived alignment with far-right political parties in Europe, further damaging the brand's reputation.

While Tesla's registrations saw a boost in certain markets such as Spain and Portugal, the overall quarterly performance was notably down. Industry experts cite the lack of diverse and competitively priced models as another factor contributing to Tesla's struggles in Europe amidst shifting consumer sentiments.

(With inputs from agencies.)