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Tesla’s grip on the European electric vehicle market is loosening, with sales in the EU, UK, and EFTA countries plummeting by 49% year-over-year in April. While the overall market for battery-electric vehicles in the region is expanding, Tesla registered a meager 7,261 new vehicles, signaling a deepening crisis for the automaker. The updated Model Y launch appears insufficient to stem the tide.

The sales downturn is attributed to several factors. Intensified competition from both established European brands and emerging Chinese EV manufacturers is putting pressure on Tesla. Elon Musk’s prioritization of AI, robotics, and autonomous driving development may also be diverting resources and focus from the core automotive business. Public perception of Musk, potentially influenced by his political stances in the EU, is reportedly declining, dragging Tesla’s brand reputation along with it. Polls and surveys suggest a growing unfavorable view of Musk and a correlating decline in the reputations of both Tesla and SpaceX.