Elon Musk's recent retreat from the political spotlight, including distancing himself from the White House, has yet to boost Tesla's stock, as EV sales in Europe continue to decline sharply and new challenges emerge in the U.S. Meanwhile, Musk has announced plans to refocus on Tesla's core car business.

Tesla's sales in key European markets continued to slump in April, despite the EV giant starting some European deliveries of the new Model Y in March.

The EV giant sold 885 cars in Germany in April, down 45.9% from a year earlier, despite the presence of its Berlin megafactory. Year-to-date sales stand at 5,820 units, representing a 60% year-over-year decline.

Meanwhile, in France, tesla delivered only 864 vehicles in April, a 59% year-over-year decline. Since the beginning of 2025, Tesla has registered 7,556 vehicles in France, down 44% compared to the same period in 2024, signaling a significant drop in demand.

In the U.K., Tesla registrations plummeted to just 536 units in April, a 62% YoY decline—the lowest in over two years. However, overall pure EV registrations in the U.K. actually rose nearly 7% during the same period, with BYD, Tesla's main Chinese competitor, surging 311% to 1,419 units.

In Spain, Tesla's new car sales fell 36% in April to just 571 vehicles. Sweden saw an even steeper drop, with sales down 81%, hitting their lowest level since October 2022. The Netherlands followed closely with a 74% decline, while Denmark reported a 67% decrease.

The main exceptions were Norway and Italy, where Tesla sales increased by 12% and 29%, respectively, compared to April 2024, reaching 976 and 446 units. However, these gains were not enough to offset the broader downward trend across Europe.

These disappointing figures come as Musk has gradually stepped away from the political arena. However, his endorsement of Trump and the ongoing tariff turmoil under the President's administration have hurt Tesla's appeal to new car buyers. Additionally, Musk's controversial reputation in Europe—fueled by his endorsements of far-right populists in Germany and France—continues to alienate European consumers.

In the U.S., Tesla has introduced fresh incentives to boost demand. The company recently began offering reduced interest rates on the new Model Y to attract buyers. For the first time, Tesla is promoting 1.99% APR or $0 Due at Signing for well-qualified buyers in the U.S. This marks the first widely available discount on the new Model Y in weeks.

Tesla's stock has seen a slight boost over the last two weeks, as Musk announced plans to step back from cryptocurrency ventures like DOGE and focus more on Tesla. Starting in May, Musk is expected to significantly reduce time spent on other projects. Additionally, the Trump administration's plans to loosen the regulatory framework for autonomous vehicles could provide long-term tailwinds for Tesla, though these efforts will take time to materialize.