Tesla Inc. followed up its worst sales month in years in France with another weak showing in February, prolonging its early-year slump in one of Europe’s biggest markets for electric vehicles.

Experts say the decline could be caused by a variety of factors, including increased electric competition and backlash to CEO Elon Musk.

Shares in electric car maker Tesla have slumped more than 9% after EU and UK sales fell by almost half in January. The drop in Tesla shares took the company's valuation back below $1trn for the first time since November 2024. Tesla has been facing stiff competition in the European market from Chinese and other manufacturers.