Tesla (NASDAQ:TSLA) sales are still slumping in Europe, with April registrations in key markets plunging as much as 67%, underscoring growing consumer pushback and demand headwinds.

In Francethe EU's second-largest EV marketTesla registered just 863 new vehicles in April, down 59% year-over-year and marking its weakest monthly performance in over two years, according to Plateforme Automobile.

Denmark saw an even steeper drop, with April deliveries tumbling 67.2% from a year ago, following a 65.6% slide in March, per Mobility Denmark data. Those declines extend a grim Q1 trend in Europe, where Tesla's overall European sales fell 37% sequentially as rivals ramped production and broader EV demand continued to grow.

The company began shipping its redesigned Model Y SUV in Marchan update analysts hoped would arrest the slidebut the momentum fizzled in April, suggesting that price-sensitive buyers and brand fatigue may be weighing on orders. Reports from the UK and Germany due later this week are also expected to show underperformance, potentially deepening the case for a regional strategy reset.

Tesla's global delivery growth has already decelerated, with the European shortfall contrasting sharply against the broader industry, where EV registrations rose mid-teens in Q1.

That divergence comes at a critical time: Tesla's margins depend on robust volume and localized manufacturing efficiencies in Gigafactories across Berlin and Shanghai. Morgan Stanley strategist Adam Jonas recently warned that European softness could pressure pricing power and chip supply leverage, while UBS flagged that slowing demand might force the company to rethink its aggressive expansion cadence.

Europe's ongoing slump not only cuts into Tesla's revenue mixwhere the region accounts for roughly 18% of total deliveriesbut also tests the resilience of its premium pricing model amid surging competition.

Investors will be watching Tesla's Q2 delivery figures in July and any fresh commentary from CEO Elon Musk on European incentives and production adjustments for signs of a turnaround.

Tesla's earnings surprise track record is looking increasingly shaky, with four straight misses out of five quarters on both revenue and EPS. Revenues undershot estimates by as much as 8.4% in Q1 2025, while EPS collapsed a staggering 59.6% below forecasts, signaling cost pressures and slowing demand. The only outliera 30.3% EPS beat in Q3 2024has proven more exception than rule. This pattern of volatile beats and brutal misses highlights an overreliance on regulatory credits and raises questions about execution as competition in the EV space intensifies. Investors should brace for further earnings volatility and margin erosion ahead.