Tesla's European Sales Nosedive: Political Ripples and Market Challenges

Tesla's sales have plunged dramatically across several European countries, raising concerns about CEO Elon Musk's political ventures impacting the automaker. Sales declines were notably severe in countries like Sweden and the Netherlands, with political backlash and aging models cited as contributing factors. Meanwhile, limited production due to factory shutdowns didn't help.

Tesla's sales faced a steep decline last month in several European markets, indicating potential challenges for CEO Elon Musk as he refocuses on the automaker. Severe declines were noted in Sweden, the Netherlands, and Denmark, with sales dropping by over two-thirds compared to the previous year.

In Germany, where Musk's political statements stirred controversy, sales plummeted by 62% in the first quarter. Analysts are cautious, warning it's unclear if politics alone are responsible for the decrease, pointing also to competition from new electric vehicle models and factory shutdowns for upgrades.

Despite bleak sales figures, Tesla's stock rose after Musk announced he would dedicate more time to the company. Italian markets showed some resilience, with a modest 3% sales increase, bucking the trend seen in other European countries.

(With inputs from agencies.)