Tesla Sales Plunge in France and Sweden Amid Political Backlash and Rising Competition

Tesla (NASDAQ: TSLA) reported a sharp decline in vehicle sales in France and Sweden for the third consecutive month in March, marking its weakest first-quarter performance in both countries since 2021. In France, Tesla sold 3,157 cars in March, down 36.83% year-on-year, while Sweden saw a dramatic 63.9% drop to just 911 units. First-quarter sales fell to 6,693 in France and 1,929 in Sweden.

The electric vehicle maker’s market share in France dipped to 1.63%, losing ground to Chinese competitors like BYD (SZ:002594), which helped push the total share of Chinese EV makers to 3.19%. Analysts view these numbers as a preview of Tesla’s global Q1 delivery report, expected soon, and a reflection of shifting consumer sentiment.

Tesla is grappling with growing challenges in Europe, including an aging model lineup and fierce competition from both legacy automakers and new, budget-friendly EVs from China. CEO Elon Musk’s controversial support for far-right political parties, including Germany’s AfD, has sparked backlash across the continent. His political stance has not only damaged brand perception but has also led to increased incidents of vandalism against Tesla vehicles and planned protests dubbed “Tesla Takedown” in both Europe and the U.S.

Musk recently claimed a fire that destroyed 17 Tesla cars at a dealership in Rome was an act of terrorism, echoing former President Trump’s statements. As Tesla prepares to launch its new Model Y SUV, its ability to regain consumer trust and compete on price and innovation will be critical in reversing this downward trend.