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Tesla (TSLA, Financials) is feeling the chill in Europe. Its April sales plummeted across key markets like France and Denmark, as political controversy and growing competition weigh on the brand.
In France, Tesla sold just 863 vehicles last month a 59.4% year-over-year drop and its fourth straight monthly decline. Sales in Denmark were even worse, falling 67.2% to only 180 vehicles.
Year-to-date, Tesla's France sales are down nearly 44%, compared to a 7.3% dip in the overall market.
It's not just about cars anymore. Tesla's limited model lineup is facing heat from new and cheaper electric vehicles especially from Chinese brands. But it's CEO Elon Musk's politics that may be burning hotter.
His outspoken support of President Trump has sparked protests across Europe, including vandalism at Tesla showrooms and charging stations. Many consumers appear to be voting with their wallets.
Tesla's European slump adds to a rough quarter. In Q1, the company's auto revenue dropped 20%, and net income plunged 71%, both missing expectations. April's data suggests the pain may continue into Q2.
More European data is expected soon, but for now, the signs point to a rocky road ahead especially if brand perception continues to slide.
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This article first appeared on GuruFocus.