Sales of vehicles made by Elon Musk‘s Tesla plummeted in the first two months of 2025 in the European Union, industry group The European Automobile Manufacturers’ Association (ACEA) said on Tuesday morning.

The number of Tesla’s new vehicle registrations dropped 49 percent year-on-year in January and February to 19,046.

Newsweek has emailed Tesla’s European press office for comment.

The fall comes amid Musk’s increased political activity in recent months, both in the U.S. as a close political ally and funder of President Donald Trump, and getting behind nationalist parties in Europe such as Germany’s AfD.

Tesla has become the target of a violent backlash against Musk’s politics, with arson and other attacks against showrooms, service centers, and factories in the U.S and Europe.

The electric automaker’s aging models are also under pressure from growing competition in Europe, as more, newer Chinese-made electric vehicles are registered.

Moreover, the auto industry is a target in the escalating tariff war between the U.S. and EU. Further tariffs from each side are due in April.

A day before the ACEA, auto research firm JATO Dynamics released data showing that Chinese-owned car brands outsold Tesla in Europe in February. Chinese-owned brands registered 19,800 new electric vehicles in Europe against Tesla’s 15,700 units.

Tesla’s market share fell to 9.6 percent, its lowest for the month of February in five years, JATO said. And Tesla’s year-to-date market share fell from 18.4 percent in 2024 to 7.7 percent this year.

“Tesla is experiencing a period of immense change,” Felipe Munoz, global analyst at JATO Dynamics, said in a release.

“In addition to Elon Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version the Model Y—its best-selling vehicle—in anticipation of the introduction of a new refreshed version.

“During this process, brands often experience a drop in sales before they return to normal levels, once the updated model becomes widely available.

“Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover.”

This is a developing story and more information will be added shortly.