Investing.com-- Tesla’s sales in Europe fell sharply in March, rounding out a dismal first quarter for the electric vehicle maker as it continued to grapple with a sales boycott, heightened competition, and emerging headwinds from trade tariffs.
Tesla’s new vehicle registrations in the European Union, the European free trade zone, and the UK, slid to 28,502 units in March from 39,684 units seen last year, data from the European Automobile Manufacturers’ Association showed on Thursday.
While registrations did pick up from the 16,888 units sold in February, Tesla’s market share in the region further deteriorated to 1.6% from 1.8%.
Tesla’s sales drop came even as overall European battery EV registrations jumped 23.6% in March. Plug-in hybrids and hybrid electric sales grew 19.5% and 24.5%, respectively, while petrol vehicle sales slid 20.1%.
Tesla’s weak March sales top off a dismal first quarter for the EV maker, with European Q1 sales sliding 37.2% year-on-year.
The world’s most valuable EV maker is grappling with a sustained sales decline in Europe, especially as several regions boycotted the brand over CEO Elon Musk’s political affiliations.
Tesla (NASDAQ:TSLA) on Wednesday reported substantially weaker than expected Q1 earnings, with its global deliveries in the quarter tumbling from last year. The company is racing to update an ageing EV lineup with a new, low-cost version of its best-selling model, the Model Y.
But Tesla’s attempts to revamp its lineup and launch autonomous vehicles face new headwinds from a bitter trade war between the U.S. and China. The company’s imports of EV components from China now face steep U.S. tariffs.
Tesla is also facing increased competition from Chinese EV makers, with the company still engaged in a dire price-cutting war with its mainland rivals.