Tesla’s (TSLA) troubles in Europe are going from bad to worse.
The latest data out of the UK found Tesla registrations (a proxy for sales) hit only 512 new vehicles in April, per the Society of Motor Manufacturers and Traders auto trade group. That figure is down 62% from a year earlier; meanwhile, Chinese EV maker BYD’s (BYDDY) registrations surged over 650% to 2,511 units.
Tesla’s UK underperformance follows weakness in other key regions. Germany’s KBA trade group reported registrations dipped 46% in the country to 885. The country is home to Tesla’s only European factory. BYD saw its German registrations jump over 755% to 1,566 units.
Tesla registrations also fell in key territories like France (down 59%), Denmark (down 67%), and Sweden (down 81%), per Bloomberg data polling national auto associations. The drops in April mirror tumbling European sales in March as well.
Tesla shares were down 2% in early trade on Tuesday.
Tesla bulls attribute depressed demand to the new Model Y changeover, which also resulted in a production slowdown. However, the EV maker began deliveries of the new Model Y, although only for the all-wheel drive version, in European regions like Germany in March. Whether those deliveries ramped up to a higher volume is unclear at this point. But what is clear is that the new Model Y is available for delivery.
Two factors are of greater concern to Tesla in Europe. The ramping up of BYD sales in European territories is eating into Tesla sales in several European countries. In addition, even legacy automakers like Volkswagen (VOW.DE), Ford (F), and Fiat saw sales gains in April.
The other big factor: CEO Elon Musk and his polarizing behavior. Musk’s closeness to President Trump — and his leadership of the Department of Government Efficiency and embrace of right-wing politicians in Europe — have had an impact on Tesla’s brand. Protests, for instance, at Tesla showrooms in the US and abroad are ongoing. Also, owners are trading in their vehicles at alarming rates, leading to falling prices in the secondary market.
With Tesla’s brand suffering and sales sliding in Q1, Musk said on the company’s latest earnings call that he would be “allocating far more” of his time to Tesla.
That move by Musk to promise a curtailing of activity in Washington in order to increase time at Tesla’s Austin HQ comes as the Tesla board may have reached a breaking point.
The Wall Street Journal reported last week that Tesla’s board of directors was in the initial stages of a formal process to find the EV maker’s next CEO. The board, according to the Journal, also told Musk he needed to spend more time back at the company and needed to let Tesla investors and the public know he was returning.