Tesla (TSLA, Financials) reported a 37% drop in vehicle registrations in France in March, continuing a pattern of sharp declines for the electric vehicle maker in European markets. According to data released by the French industry association Plateforme Automobile, the Texas-based company registered 3,157 vehicles during the month.
The drop was much bigger than the 15% drop in the French car market as a whole during the same time period. Tesla’s sales dropped in France after falling 26% in February and 63% in January. This shows that the company is still struggling in an area that has been important to its foreign growth plan.Tesla’s sales drop in Europe wasn’t just in France. In February, the company said that sales for new cars across the continent had dropped 40% year-over-year. The drop in sales comes as political criticism over CEO Elon Musk’s work with former U.S. President Donald Trump’s administration grows. Analysts have also said that a change in models is hurting Tesla’s performance in Europe. This is because some potential buyers are waiting for new designs on vehicles before they buy them.Even though sales were down, Tesla stock was up 3.3% in premarket trading on Tuesday. The price has dropped almost 30.4% so far this year.
This article first appeared on GuruFocus.