Tesla witnessed a significant downturn in European sales last month, with figures dropping by half even as the electric car market experienced growth, according to recent data.
The figures highlight the challenges Tesla faces amid backlash against its CEO, Elon Musk, and his views.
Across 32 European countries, Tesla's sales plummeted by 49% in April, totaling 7,261 vehicles compared to 14,228 in the same month last year, as reported by the European Automobile Manufacturers' Association (ACEA).
At the same time, sales of battery-electric vehicles by all manufacturers rose about 28%. Meanwhile, sales of gasoline and diesel powered cars slumped.
The figures, which cover the European Union's 27 member countries and five other nations outside the bloc, back up early data from Sweden, the Netherlands and Denmark released earlier this month that had pointed to a sales collapse.
Tesla has been reeling from protests and boycotts over Musk wading into politics, but it also faces other factors including an aging model lineup and intensifying competition from rival electric vehicle brands, particularly from China.
In one sign that Tesla appears to be losing ground to cut-price Chinese brands, sales at China's SAIC zoomed up 54% in April, according to the ACEA figures. SAIC owns a slew of auto brands including U.K.-based MG, known for its low-cost EV models.
Tesla is also suffering because it had to shut down factories for several weeks this year while upgrading its best selling Model Y sport utility vehicle, pinching supply.
For the first four months of the year, Tesla's European sales fell roughly 39% to 61,320 while the continent's auto market as a while showed little change during the same period, according to the data.
Meanwhile, on Tuesday, U.S. stock index futures surged after President Donald Trump dialed back his threat of steep tariffs against the EU and tensions between the United States and the European bloc cooled.
On Sunday, Trump rolled back his threat to impose 50% tariffs on EU imports next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to arrive at a deal.
He had said on Friday that he was recommending a 50% tariff effective June 1 and expressed frustration that trade negotiations with the EU were not moving quickly enough.
"We think the current US tariff level is not a 'stable equilibrium' and we do not take it for granted that the US and the EU will be able to agree on a benign outcome by July," UBS strategists said in a note.
Asian and European markets were mixed after rising on Monday, although moves in U.S. assets were more pronounced as traders returned after the long weekend.
At 06:42 a.m. ET, Dow E-minis were up 551 points, or 1.32%, S&P 500 E-minis rose 88.25 points, or 1.52%, and Nasdaq 100 E-minis gained 342.5 points, or 1.63%.
Most megacap and growth stocks jumped in premarket trading. Apple was up nearly 2%, Alphabet rose 2% and Tesla climbed 2.7%.
