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Tesla sales rout in Europe deepens amid anti-Musk protests

By Alessandro Parodi

(Reuters) -Tesla's sales in key European markets fell again in March, data showed on Tuesday, adding to signs that drivers are shunning Elon Musk's electric car brand as competition from China stiffens and some protest against his political views.

New Tesla sales in France and Sweden dropped for a third consecutive month, contributing to its lowest first-quarter sales figures in the two countries since 2021.

"Never has a car brand suffered such a global fall from grace," said Quentin Willson, founder of British EV campaign group FairCharge and a Tesla owner.

Billionaire CEO Musk, a close ally of U.S. President Donald Trump, has stirred controversy by courting far-right parties in Europe, adding to Tesla's sales slump ahead of the much-anticipated launch of its Model Y mid-size SUV.

In response to his right-wing activism, Tesla cars and dealerships have become targets for vandalism. Dozens of cars were burnt and showrooms spray painted in several European cities including Rome, Berlin and Stockholm in recent days.

"We're all embarrassed," said Luca Del Bo, president and co-founder of Italy's Tesla owners club, who bought his first Tesla 10 years ago and currently owns a 2022 Model 3.

While describing Musk as a genius, he said: "We'd all be happy of course if Musk just went back to just being a CEO."

Analysts expect data from Italy and other European markets on Tuesday and Wednesday to provide more clues on the group's global first-quarter delivery figures, to be released on Wednesday, and consumer sentiment towards the brand.

Tesla last month registered 3,157 car sales in France, 911 in Sweden and 2,211 in Norway, dropping 36.83%, 63.9% and 1% respectively from last year, official data showed.

In Denmark, registrations totalled 593, down 65.6%, and they fell by 61% to 1,536 in the Netherlands.

Quarterly sales were down 41.1% in France, 55.3% in Sweden, 12.5% in Norway, 55.3% in Denmark and 49.7% in the Netherlands.

The group's market share in France dropped to 1.63% in the quarter ending March, from 2.55% a year ago. It lost ground to brands grouped as "others" by national car body PFA. These include BYD and other Chinese EV makers, which increased their share to 3.19%.

Spain and Portugal bucked the trend, with Tesla registrations for March up 34.3% and 2.1% respectively. But they dropped 11.8% and 25.7% in the quarter despite an accelerating electrification trend in the two markets that led to market share gains for some Chinese competitors.