The billionaire CEO, a close ally of US President Donald Trump, has stirred controversy by courting far-right parties in Europe, which has added to Tesla’s sales slump ahead of the much-anticipated launch of its new Model Y mid-size SUV.

Analysts expect data from France, Sweden and other key European markets today to provide an important indication of the group’s global Q1 deliveries, expected tomorrow, and consumer sentiment towards the brand.

Tesla registered in March 3,157 car sales in France and 911 in Sweden, dropping respectively 36.83% and 63.9% from last year, official data showed.

Its quarterly sales were down to 6,693 in France and 1,929 in Sweden.

The group’s market share in France dropped to 1.63% in the quarter ending March and lost ground to brands not accounted for by the PFA, including BYD and other Chinese EV makers, whose total share of the market rose to 3.19%.

Tesla woes

Tesla currently faces a number of challenges in Europe.

The EV maker has a smaller, ageing lineup while traditional automaker rivals and new Chinese entrants are launching new, often cheaper electric models.

Musk’s support of far-right parties in Europe, including for Germany’s AfD that came second in February’s national elections, also appears to have hurt Tesla’s sales on the continent.

“In the US, the strategy would be to leverage, would be to tie to patriotism and shift to the right,” said Eric Schiffer, chief executive of private equity firm the Patriarch Organization in Los Angeles.

“The European strategy is going to be more challenged and will need to be more about the value and competitive differences with the market there,” he said.

In response to Musk’s right-wing activism, Tesla cars have become targets for vandalism across several countries, while “Tesla Takedown” protests are planned across Europe and the US.

On Monday, Musk said that an overnight fire at a Tesla dealership in Rome that destroyed 17 cars was an act of terrorism, reiterating earlier comments by Trump.