Sales of Tesla’s electric vehicles plummeted 60 per cent in the UK last month amid a broader slump in European demand, as the board hands chief executive Elon Musk a $30bn stock award to incentivise him to revive the carmaker’s fortunes.

There were 987 Tesla vehicles registered in July, compared with 2,462 in the same month last year, according to figures from the UK’s Society of Motor Manufacturers and Traders. The sharp drop marked a reversal from the 14 per cent year-on-year increase in June.

Tesla’s sales have declined in large European markets this year on the back of a consumer backlash to Musk’s political activism and increased competition from rivals including China’s BYD. Registrations of BYD cars in the UK rose more than fourfold year on year to 3,184 in July, according to SMMT.