Some automakers have increased the prices of petrol engine models to encourage EV adoption, but the industry fears that customers will simply buy fewer cars.

Sales of Tesla vehicles tumbled 45% in Europe last month, even as the overall EV market picked up in the region. The stock closed 8% lower on Tuesday.

Tesla's stock tumbled 8% on Tuesday, pushing its market value below $1 trillion for the first time since November after data showed the electric car maker's sales slumped in Europe in January. The European Automobile Manufacturers Association reported that Tesla sales dropped 45% in Europe,