The sharp decline comes at a time when overall electric vehicle sales across Europe have been accelerating, rising by 24 per cent to 412,997, the European Automobile Manufacturers Association (ACEA) said.

But the falling sales of Tesla have caused a significant challenge for Musk, who is now facing global declines in the iconic electric car brand.

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Electric vehicles in general have been on a continuous upward trend across Europe, with strong sales recorded in key markets including Spain, Germany, Italy and Austria.

However, France proved to be an outlier, with EV sales falling 6.6 per cent after subsidies were scaled back late last year.

Hybrids still remain the most popular type of car in the EU, taking a 35 per cent market share, with petrol cars second at 29 per cent and electric vehicles accounting for 15 per cent of the market.

But the specific drop for Tesla is a fresh headache for Musk, who has refocused his attention on rebounding from the sales slump experienced across the company.

Critics have accused the billionaire of endangering the electric car maker’s brand with his vocal support for Donald Trump and his involvement with the US president’s Department of Government Efficiency.

But this week, to combat the drop in interest by drivers, Musk assured investors he was now set to spend “far more” time on his company.

Wall Street analysts have warned Musk needed to show improvement urgently amid concerns the company’s current car line-up looks tired. Investors are also thought to have called for Musk to step down.

It follows the car boss’spolitical intervention,which has enraged some of Tesla’s liberal-leaning customers, sparking campaigns to boycott its vehicles and even arson attacks by extreme protesters.

Tesla noted in its financial report that “changing political sentiment” could have a meaningful impact on demand for its products in the near term.Protests are now seen regularly across the US, Canada, Germany, France and the UK, forming part of the “Tesla Takedown” movement.

In response to growing violent attacks on Tesla models, showrooms and Superchargers, Musk has dubbed these protesters as “domestic terrorists”.

Tesla’s financial struggles extend beyond Europe, with its global automotive revenues falling 20 per cent year-on-year, dropping from $17.3billion (£12.99billion) to just $13.9billion (£10.44billion).

In the first quarter of 2025, Tesla produced over 362,000 vehicles and delivered 336,000, with the vast majority being Model 3s and Model Ys.

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Despite these challenges, Tesla detailed how its plan for more affordable models “remains on track” for production starting in the first half of 2025.

Meanwhile, Tesla’s European operations saw the 500,000th Model Y built at its Giga Berlin factory, while it plans to expand into the Middle East in the coming months.

However, the ACEA warned that EVs’ market share, at 15 per cent, is still “far from where it was expected to be” as the EU prepares to introduce new vehicle emission curbs.