Tesla (TSLA) stock rose in pre-market trading on Tuesday, despite the electric carmaker suffering a steep decline in European sales last month amid continued backlash against chief executive Elon Musk.

According to data released by the European Automobile Manufacturers’ Association (ACEA), Tesla's (TSLA) registrations in the European Union fell 52% year-on-year in April, dropping to 5,475 vehicles from 11,540 in the same month of 2024. Across the broader EU, EFTA and UK region, sales were down 49%

The sharp decline comes as Tesla (TSLA) continues to face reputational challenges linked to Musk’s public political affiliations. The billionaire entrepreneur has drawn criticism for his vocal support of US president Donald Trump, sparking protests at Tesla showrooms across Europe earlier this year.

Over the first four months of 2025, Tesla (TSLA) sales in Europe have fallen nearly 40% compared to the same period last year.

Despite the decline, Musk has reiterated his long-term commitment to the company. In a recent public address, he said he intends to remain at the helm of Tesla (TSLA) for at least the next five years.

Shares in Nvidia (NVDA) traded lower ahead of the US market open, as investors looked ahead to the chipmaker’s eagerly anticipated earnings report, due after the bell on Wednesday.

The consensus among analysts is that Nvidia (NVDA) will post earnings of 73 cents per share for the first quarter, up 16% from a year earlier, on revenue of $43.4bn (£32bn) — a 66% year-on-year increase. However, expectations have softened in recent weeks, with earnings forecasts falling from 93 cents per share 60 days ago.

Nvidia (NVDA), whose graphics processing units are central to the global artificial intelligence boom, has a track record of outperforming forecasts.

AJ Bell's (AJB.L) investment experts, Russ Mould, Danni Hewson and Dan Coatsworth said that Nvidia (NVDA) "has had the happy knack of beating estimates, which on this occasion will be benchmarked against the guidance given by chief executive Jensen Huang alongside the full-year results back in February. Just as important will be any steer or forecasts for the second quarter, which runs from May through to July."

Nvidia's report is likely to have a broader market impact, given its heavyweight status in the S&P 500 (^GSPC) index. Investors are expected to scrutinise the results for signs of how AI-related demand — and fears of increased competition and tariffs — may affect the sector more widely.