The electric car manufacturer has seen a stark decline in sales in Europe over recent months, amid a backlash against Elon Musk - the CEO of Tesla - and his high-profile involvement with Donald Trump's US government.

Russ Mould, of the investment broker AJ Bell, said: "At the weekend, Chinese rival BYD slashed prices on several of its models in the world’s second largest economy – making the difference between the price tag on its vehicles versus Tesla’s particularly stark.

"Tesla sales continue to slump in Europe – halving in April according to the latest data. Given this came against a backdrop of a meaningful increase in European electric vehicle sales more broadly, it suggests the brand damage caused by Elon Musk’s political interventions may be lasting.

"The company may also be suffering from its lack of tyre print in the hybrid market with many motorists still wary of going fully electric."

Figures from the European Automobile Manufacturers’ Association show that Tesla registrations fell from 14,228 in April 2024 to 7,261 last month across the EU, the UK, and the European Free Trade Association bloc.

By contrast, the overall battery electric car sales actually increased by 27.8 percent in April.

Meanwhile, Elon recently stepped down from his role with the US government.

He said in a statement on X: "As my scheduled time as a Special Government Employee comes to an end, I would like to thank President

@realDonaldTrump for the opportunity to reduce wasteful spending.

"The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government. (sic)"