Tesla Faces Slump in European Market as EV Sales Rise

Tesla has witnessed a significant downturn in its European sales, dropping by 49% this April compared to last year, even as the sector for battery-electric vehicles surged by 27.8%, according to data from the European Automobile Manufacturers Association (ACEA). The U.S. electric vehicle giant's fresh Model Y variant seems to be doing little to rejuvenate its market position within the region.

The decline in Tesla's European sales marks its fourth consecutive month in the red. Industry insiders attribute the slump to a negative response towards CEO Elon Musk's political stances, coupled with tepid reception for the Model Y and heightened rivalry from European and Chinese manufacturers.

Consequently, Tesla's European market share dwindled from 1.3% to a mere 0.7% in just a year. Meanwhile, European automakers are focusing on cost-cutting measures to battle against fierce competition, U.S. import tariffs, and an overall slowing global economy, despite an improved outlook following reduced U.S.-China trade conflicts.

(With inputs from agencies.)