Brussels: Tesla's sales in Europe have experienced a significant decline, with a 40.5% drop in May compared to the previous year, according to data released by the European Automobile Manufacturers' Association (ACEA). The US-based electric vehicle company, led by billionaire Elon Musk, sold 8,729 units in May in the EU, compared to 14,682 units in May of the previous year.

According to Anadolu Agency, Tesla's sales across Europe, including the EU, the European Free Trade Association, and the UK, also decreased by 27.9% to 13,863 units in May, compared to the same month last year. In contrast, the overall sales of battery electric cars in Europe increased by 27.2% in May, reaching 193,493 units.

Chinese automakers, on the other hand, have seen a significant rise in sales, with a year-on-year increase of 111% in May, totaling 65,808 units, based on data from JATO Dynamics. The market share of Chinese car brands has also doubled to 5.9%. Despite the EU's tariffs on Chinese electric vehicles, these brands have continued to expand in Europe. Felipe Munoz, a global analyst at JATO Dynamics, noted that this momentum is partly due to their focus on alternative powertrains, such as plug-in hybrids and full hybrids.

The decline in Tesla's sales in Europe has been attributed to several factors, including Elon Musk's political involvement in Europe and the growing competition from Chinese brands.