Tesla sales across Europe plunged 40% last month, raising further questions over the extent drivers are being put off by its chief executive Elon Musk’s politics.

Data covering the EU, Britain and European Free Trade Association (EFTA) nations on Tuesday showed a rise in overall new electric car sales during February, but Tesla lagging behind its peers.

It sold fewer than 17,000 cars compared to over 28,000 in the same month in 2024, with a market share of 1.8% compared to the 2.8% seen 12 months ago.

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The European Automobile Manufacturers Association (ACEA) said Tesla had sold 42.6% fewer cars in Europe in the year to date.

While total new car sales were down 3.1% on the same period in 2024, those for battery electric vehicles were 26.1% higher.

The declines for Tesla were limited to the continent as the UK’s industry body, the SMMT, had already flagged a 20% rise in Tesla sales during February compared to February 2024.

The figures were released just hours after it was revealed that Chinese competitor BYD had overtaken its US rival in global annual revenue during 2024, despite the impact of European Union and US tariffs on Chinese-made EVs.

Tesla’s challenges include more intense, and cheaper, competition especially from China and a lack of budget models.

It has also suffered from a lack of new models – with the mid-size Model Y yet to launch.

But market commentators argue Mr Musk‘s intervention on behalf of right-wing political parties, seen most recently in the run-up to Germany’s national elections in which he publicly urged Germans to vote for the AfD, have contributed significantly to the sales decline.

Tesla’s sales in Germany were more than 70% lower in February – the month of the election.

Mr Musk’s alignment with Donald Trump in the United States, in which the Tesla boss has led efforts to shrink Federal government spending including through controversial job cuts, has prompted boycotts at home.

US figures released last week showed Tesla customers trading in their cars at record levels.

There have been violent protests too, with the FBI now investigating a series of attacks on Tesla interests including dealerships.

Mr Musk has led funding and job-cutting measures at the newly created Department of Government Effeciency (DOGE), claiming he is seeking to stop government waste, fraud, and abuse.

Critics say his aim is to destroy government departments and ultimately to consolidate his wealth and power.

Republican supporters have dubbed Musk’s opponents “Tesla terrorists”.

The most recent reported attack was seen in Austin, Texas, on Monday.

Local police say several “incendiary devices” were found and made safe on a sales forecourt.

Shares in the company lost more than 50% of their market value – a hit worth around $800bn – between December and early March as investors fretted on several fronts, including over the attacks and tariffs.

Another concern was that the company had lost its focus, given the expanding demands on its chief executive’s time.

One of Tesla’s most longstanding shareholders told Sky News last week that Mr Musk should step aside unless he quit his Trump administration interests.

The president himself has attempted to help Mr Mush stop the rot by buying a Tesla car in a public show of support.

Tesla shares staged a rally of almost 12% on Monday – partly aided by growing evidence that Mr Trump could exclude the auto sector from new tariffs from 2 April.

Ahmad Assiri, research strategist at the brokerage Pepperstone, said of the challenges facing Tesla: “Musk’s political engagement has triggered a significant backlash, notably evident through explicit calls for boycotts, negatively impacting Tesla’s reputation among substantial segments of consumers and investors, particularly given the implicit political biases.

“This situation further complicates management’s position in handling this adverse environment.”

He added: “Concurrently, China’s BYD continues to gain considerable traction in the EV market, recording rapid growth and becoming increasingly attractive to consumers and investors alike.

“This intensifying competition directly threatens Tesla’s market share”.