Tesla is encountering significant headwinds in Europe, with vehicle registrations in France plummeting by 37% in March, according to data from the French industry association Plateforme Automobile.
The Texas-based electric vehicle manufacturer recorded just 3,157 registrations for the month, marking a sharper decline than the overall French auto market, which faced a 15% contraction.
This downturn in France is part of a broader pattern for Tesla, which saw a 26% fall in February following a staggering 63% drop in January. Such figures underscore Tesla’s ongoing challenges in a key region for its international expansion efforts. In February, the company reported a 40% year-over-year decrease in new car sales across Europe.
Tesla’s sales struggles coincide with growing political scrutiny surrounding CEO Elon Musk’s previous engagement with former U.S. President Donald Trump’s administration.
Analysts suggest that these political factors, coupled with a model transition, are impacting Tesla’s European performance. Prospective buyers may be delaying purchases as they await new vehicle designs, contributing to the sales dip.
Despite the decline in European sales, Tesla shares rose 3.3% in premarket trading on Tuesday. However, the stock has suffered a 30.4% drop so far this year.
