Tesla sales fell across Europe after countries including Germany and France reduced subsidies for electric cars.
Sales at the Western standard bearer for electric vehicles fell by 8% across Europe and the UK in the first four months of this year.
During the same period last year, Tesla saw sales grow by 78%.
These bleak figures came against the backdrop of slightly better electric vehicles more broadly, with sales up 14.4% across all brands.
Overall, from January to April this year, Tesla sold 100,124 cars, down from 108,737 in the same period in 2023, according to figures published by the European Automobile Manufacturers Association.
Figures published separately show that 13,120 were sold in the UK, down from 15,168 last year.
Tesla has previously warned investors to expect sales to “significantly decline” in 2024 as the electric car maker faces higher interest rates and tougher competition, especially in China where local brands engage in fierce price wars.
In Europe, Tesla sold only 13,951 cars in April, its worst monthly figure since January 2023.
This comes at a time when Western manufacturers are preparing for the arrival of cheaper Chinese electric cars, which are expected to shake up the market.
This has sparked calls in some quarters for Europe to impose tariffs on Chinese brands, as the United States has done, following concerns about government support provided to it by Beijing.
But Carlos Tavares, chief executive of Stellantis, the car giant behind Vauxhall, Fiat and Citroen, on Wednesday rejected those calls.
Tavares told Reuters that imposing tariffs would be a “big trap for countries on this path” and would not allow Western automakers to avoid change to compete with their Chinese rivals.
“When competition fights to absorb the 30% cost competitiveness advantage of the Chinese, there are social consequences,” he added.
“But governments, European governments, do not want to face this reality now.
“If we allow the share of Chinese (automakers) to grow… you are clearly going to create excess capacity, unless you fight that competition.”
Meanwhile, several European governments have recently reduced or reduced government subsidies for electric vehicles.
Germany and Sweden eliminated the subsidy at the end of last year, while France, Ireland and other countries have tightened the amount of subsidy drivers can receive.
The UK has abandoned a grant to purchase electric cars in 2022.
Auto industry lobbyists criticized the moves and said the subsidies were being removed at the worst possible time.
In the UK, subsidy cuts were followed by the introduction of legally binding sales targets for electric vehicles under the Zero Emission Vehicles Mandate.
Under that mandate, at least 22% of automakers’ sales must be electric this year. The target then gradually rises to 80% by 2030 before banning sales of new petrol and diesel vehicles in 2035.
Similar rules banning cars with tailpipe emissions are due to come into effect in Europe in 2035, which will also be preceded by tightening emissions requirements.
However, the slowdown in electric vehicle sales has prompted manufacturers including Volkswagen and Mercedes-Benz to rethink their product plans, with some deciding to prolong production of hybrid cars.
At this time last year, electric vehicle sales were growing at a rate of nearly 50%.
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