BRUSSELS, Belgium: Tesla's sales in Europe nosedived in April, with sharp drops across multiple countries, including an 81 percent plunge in Sweden—its worst showing there in over two years—amid growing competition from Chinese EV makers and growing criticism of CEO Elon Musk's political alignment.

The company has now posted four consecutive months of declining sales across much of Europe. While overall sales of fully electric cars rose 28 percent in the region in the first quarter, Tesla's sales slumped 37.2 percent.

In April, new Tesla registrations in Sweden dropped 80.7 percent to their lowest level since October 2022. Sales in the Netherlands fell 73.8 percent, while Portugal saw a 33 percent decline—worse than the previous month. Tesla's sales also dropped 67.2 percent in Denmark and 59.4 percent in France.

Analysts are watching closely to see if a revamped Model Y, now available for pre-order in several markets with deliveries starting in June, can help reverse the trend.

"Tesla's technological lead has largely been eroded with the current model lineup," said Andy Leyland, co-founder of supply chain consultancy SC Insights. "Competition from both legacy auto and Chinese entrants will be weighing on sales."

Will Roberts, head of automotive research at Rho Motion, said Tesla's recovery may be tied to post-downtime production returning to normal, but underperformance month after month could jeopardize the company's full-year outlook.

To attract buyers, Tesla is offering financial incentives, including car loan discounts, in key markets such as Norway, Sweden, Germany, Britain, and France.

Musk's close association with U.S. President Donald Trump, including his role in the Department of Government Efficiency, has sparked backlash. Though Musk recently said he would scale back his involvement with the administration, the brand continues to face protests and vandalism in both the U.S. and Europe.

"The brand has taken a reputational hit here in Europe," said Electrifying.com CEO Ginny Buckley. A survey conducted from March 24 to April 11 found that 59 percent of 1,642 respondents were less likely to buy a Tesla due to Musk's actions.

According to local industry data, in April, Tesla sold just 203 cars in Sweden, 382 in the Netherlands, and 302 in Portugal. The brand fared better in Norway and Italy, with respective sales increases of 11.8 percent and 29.3 percent.

Tesla's market share in the EU's battery-electric segment fell to 8.8 percent in the first quarter, down from 19.7 percent a year earlier. Meanwhile, Chinese EV makers gained ground: BYD reached a 2.9 percent share, and Xpeng hit 1.2 percent. BYD also captured 3.1 percent of the plug-in hybrid market, with SAIC and Chery expanding their shares to 3.9 percent and 0.6 percent, respectively.

Tesla's Q1 auto revenue fell by 20 percent, and net profit plunged 71 percent, missing Wall Street expectations. Chair Robyn Denholm denied a Wall Street Journal report that the board was considering replacing Musk as CEO.

Tesla did not respond to a request for comment.