Tesla’s sales in the European Union logged another steep decline in May, continuing a downward trend for Elon Musk’s electric-vehicle maker even as the bloc’s EV market shows signs of growth.

New-car registrations for Tesla models, a reflection of sales, fell 40.5% to 8,729 vehicles across the EU last month, according to the European Automobile Manufacturers’ Association, an industry body also known as ACEA. When including the U.K., Iceland, Liechtenstein, Norway and Switzerland, sales contracted nearly 28% to 13,863 vehicles.