Tesla has experienced a continued downturn in sales across several European markets in August, marking the eighth consecutive month of year-on-year declines.

Tesla faces stiff competition from China's BYD and dealing with the repercussions of CEO Elon Musk's high profile political activities and outspoken support for right-wing political parties and causes, reported Reuters.

In France, data showed that new Tesla car registrations fell by 47.3% compared to the same month in the previous year, even as the overall car market saw a growth of around 2.2%.

Sweden witnessed an even more dramatic drop, with Tesla registrations plummeting over 84%, whereas Denmark reported a 42% decrease.

The Netherlands and Italy also saw declines of 50% and 4.4%, respectively.

Norway, a stronghold for the company where EVs dominate the market, experienced a 21.3% increase in Tesla registrations.

Despite this, BYD saw a surge, with registrations jumping 218%, according to the publication.

Portugal's market provided a silver lining for Tesla, with an increase of 28.7% in August registrations.

Spain, too, recorded a rise of 161% in Tesla sales, bolstered by EV subsidies of up to $8,200.

Comparatively, BYD's Spain sales have seen a 675% increase year-to-date, while Tesla's growth has been at 11.6% to 9,303 vehicles.

The decline in European sales has been partly attributed to Tesla's limited range of models and the absence of a new mass-market model since the Model Y in 2020.

Conversely, Chinese competitors and traditional automakers have been introducing a variety of new models to the market.

Earlier in the year, Tesla's European representatives suggested that the sales dip was primarily due to a shift in production to an updated version of the Model Y, which had been the top-selling car in Europe in 2023.

Despite the commencement of deliveries in June, sales of the Model Y saw significant reductions in Denmark and Sweden in August.

Tesla sold 384,122 cars in the second quarter, down around 60,000 cars, or 13.5% from the sales total a year ago, marking the company's largest year-over-year sales decline to date.

Complicating Tesla's competitive position, Musk's political activities, including support for US President Donald Trump and European far-right parties, have led to a consumer backlash.

Additionally, Tesla has reportedly reduced the price of its Model 3 rear-wheel drive version in China by 3.7% to 259,500 yuan ($36,278.99).

In August, Musk indicated that a six-seat Model Y variant, introduced recently in China, may not be produced for the US market.