NEW YORK CITY, New York: Europeans are turning away from Elon Musk and his cars, despite his prediction of a "major rebound" in Tesla sales.

New data released on August 28 shows Tesla sales in the European Union fell 40 percent in July compared to a year earlier, even as overall electric vehicle sales rose sharply.

The European Automobile Manufacturers' Association reported that Tesla sold just 6,600 cars in the EU in July, down from 11,465 the previous year. By contrast, Chinese rival BYD increased its sales, capturing 1.1 percent of the total car market compared with Tesla's 0.7 percent. Tesla's stock price fell 1.5 percent on the same day.

One primary reason for the decline is Musk's political behavior in Europe, which has sparked anger and protests. He has backed far-right candidates, called a British prime minister an "evil tyrant" who belongs in prison, and warned Germans their country would suffer significantly if they didn't vote for the anti-immigrant Alternative for Germany party. In response, protests erupted across several cities. In Milan, demonstrators hanged Musk in effigy, while posters in London compared him to a Nazi.

Tesla is also struggling with other issues in Europe. Regulators have not yet approved the company's Full-Self Driving software, which is already available in the U.S. and is seen as a key feature for buyers. Musk had predicted approval would come by March this year, but it has not happened. On top of that, Tesla temporarily shut down factories earlier this year to retool for a new version of its best-selling Model Y SUV, further slowing sales.

The company is now betting on the launch of cheaper Tesla models later this year to recover lost ground. But for now, the picture looks grim: in the first seven months of 2024, Tesla's EU sales dropped 44 percent. During that period, Tesla held only 1.2 percent of the overall European car market, compared with 0.9 percent for BYD.