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Tesla's sales slump in Europe deepened in April, with significant drops reported in both France and Denmark, reflecting growing challenges for the electric vehicle (EV) maker.

The decline comes as Chinese EV brands gain popularity and CEO Elon Musk faces backlash over his political views.

In France, Tesla registrations plunged 59.4% year-over-year to just 863 vehicles, according to data from the French car industry group PFA. This sharp fall follows a 36% drop in March. Since the beginning of the year, Tesla’s sales in the country are down 43.9%, far outpacing the broader market’s 7.3% decline.

In Denmark, Tesla also saw a steep decline, with April sales falling 67.2% from the previous year to 180 vehicles, based on data from Mobility Denmark. March had already seen a 65.6% year-over-year drop.

Tesla’s challenges in Europe are multifaceted. The company has a limited and aging lineup, while both legacy automakers and Chinese competitors are releasing newer, often more affordable EVs. Additionally, Musk’s outspoken alignment with far-right politics has sparked protests and vandalism targeting Tesla facilities across Europe and the U.S.

April vehicle registration data from other European countries, including Italy, Sweden, and Norway, is expected soon. In March, Tesla’s overall European sales declined by 28.2%.

Investors are closely monitoring these trends after Tesla’s disappointing first-quarter earnings. The company’s automotive revenue dropped 20%, and net profit fell 71%, both missing analyst expectations.

Meanwhile, reports have emerged suggesting internal concerns about Musk’s leadership. While The Wall Street Journal claimed the Tesla board had contacted search firms to explore CEO replacements, Chair Robyn Denholm denied these claims on Thursday.

Elon Musk recently stated he plans to reduce his involvement with the Trump administration to refocus on leading Tesla. Musk has been a key figure in the Department of Government Efficiency (DOGE), aimed at cutting federal spending.

Overall, total new car registrations in France declined by 5.64% in April to 138,694 vehicles, highlighting broader industry headwinds as well.