Tesla's sales in key European markets fell again in March, data showed on Tuesday, adding to signs that drivers are shunning Elon Musk's electric car brand as competition from China stiffens and some protest against his political views.

Still, Deutsche Bank analysts expect a 5% sales drop this year, assuming a staggered rollout of Tesla's anticipated cheaper car. Tesla is expected to prioritize delivery volumes at the cost of margins again this year with more incentives and lucrative financial deals, they said.

For Tesla, however, the numbers are downright awful. In the January-February period of 2025, the company sold 37,311 units in Europe, a 49 percent decline compared to the same period last year.