By KELVIN CHAN, AP Business Writer

LONDON (AP) — Tesla sales across Europe plunged by half last month even as growth in the electric car market picked up pace, according to data released Tuesday.

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The numbers are the latest indication of how much the Tesla brand is suffering because of the backlash against billionaire CEO Elon Musk over his far-right views.

Sales of Tesla vehicles in 32 European countries tumbled 49% to 7,261 in April from 14,228 in the same month the previous year, according to the figures released by the European Automobile Manufacturers’ Association, or ACEA.

At the same time, sales of battery-electric vehicles by all manufacturers rose about 28%. Meanwhile, sales of gasoline and diesel powered cars slumped.

The figures, which cover the European Union’s 27 member countries and five other nations outside the bloc, back up early data from Sweden, the Netherlands and Denmark released at the start of this month that had pointed to a sales collapse.

Tesla has been reeling from protests and boycotts over Musk wading into politics, but it also faces other factors including an aging model lineup and intensifying competition from rival electric vehicle brands, particularly from China.

U.S. President Donald Trump’s trade war has also turned Europeans off buying American brands. In recent days, Trump threatened to impose a 50% tariff on EU goods, accusing the bloc of being “very difficult to deal with,” before agreeing to delay the duties until July.

In one sign that Tesla appears to be losing ground to cut-price Chinese brands, sales at China’s SAIC zoomed up 54% in April, according to the ACEA figures. SAIC owns a slew of auto brands including U.K.-based MG, known for its low-cost EV models.

Tesla is also suffering because it had to shut down factories for several weeks this year while upgrading its best selling Model Y sport utility vehicle, pinching supply.

For the first four months of the year, Tesla’s European sales fell roughly 39% to 61,320 while the continent’s auto market as a while showed little change during the same period, according to the data.

For April, car sales in the EU edged up 1.3% from the previous year, “showing signs of recovery despite the ongoing unpredictable global economic environment,” the group said in a press release.

By MICHELLE CHAPMAN, AP Business Writer

It’s the last day to book a flight on Southwest Airlines without being hit with a fee to check bags after the airline abandoned a decades-long luggage policy that executives once described as key to differentiating the budget carrier from its rivals.

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The airline announced the change in March, saying at the time that the the new policy would start with flights booked on Wednesday.

Southwest said Tuesday that it will be charging $35 for a first checked bag and $45 for a second checked bag. Weight and size limits will apply for bags.

Southwest had built years of advertising campaigns around its policy of letting passengers check up to two bags for free. Under its new policy, people who haven’t either reached the upper tiers of its Rapid Rewards loyalty program, bought a business class ticket or hold the airline’s credit card will have to pay for checked bags.

Southwest will continue to offer two free checked bags to Rapid Rewards A-List preferred members and customers traveling on Business Select fares, and one free checked bag to A-List members and other select customers. Passengers with Rapid Rewards credit cards will receive a credit for one checked bag.

People who don’t qualify for those categories will get charged to check bags. The airline said in March that it also would roll out a new, basic fare on its lowest priced tickets when the change takes effect.

The airline estimated in September that charging bag fees would bring in about $1.5 billion a year but cost the airline $1.8 billion in lost business from customers who chose to fly Southwest because of its generous baggage allowance.

Another policy that will take effect on Wednesday is Southwest requiring passengers to keep their portable chargers in plain sight while using them because of concerns about the growing number of lithium-ion battery fires.

These aren’t the only changes at Southwest. The Dallas airline previously announced that it was leaving behind another Southwest tradition, the open-boarding system it has used for more than 50 years. Southwest expects to begin operating flights with passengers in assigned seats next year.

The airline also said last year that it would charge customers extra for more legroom and offer red-eye flights.

Southwest has struggled recently and is under pressure from activist investors to boost profits and revenue. The airline reached a truce in October with hedge fund Elliott Investment Management to avoid a proxy fight, but Elliott won several seats on the company’s board.

The airline announced in February that it was eliminating 1,750 jobs, or 15% of its corporate workforce, in the first major layoffs in the company’s 53-year history.

Shares of Southwest Airlines Co. rose 3% at the opening bell Tuesday along with other carriers in an up day for the sector.

By MATT OTT, AP Business Writer

WASHINGTON (AP) — Americans’ views of the economy improved in May after five straight months of declines sent consumer confidence to its lowest level since the onset of the COVID-19 pandemic, largely driven by anxiety over the impact of President Donald Trump’s tariffs.

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The Conference Board said Tuesday that its consumer confidence index rose 12.3 points in May to 98, up from April’s 85.7, its lowest reading since May 2020.

A measure of Americans’ short-term expectations for their income, business conditions and the job market jumped 17.4 points to 72.8, but remained below 80, which can signal a recession ahead.

The proportion of consumers surveyed saying they think a U.S. recession is coming in the next 12 months also declined from April.

Trump’s aggressive and unpredictable policies — including massive import taxes — have clouded the outlook for the economy and the job market, raising fears that the American economy is headed toward a recession.

However, Trump’s tariff pullbacks, pauses and negotiations with some trading partners may have calmed nerves for the time being.

“The rebound was already visible before the May 12 US-China trade deal but gained momentum afterwards,” said Stephanie Guichard, senior economist at The Conference Board.

Trump had initially imposed a stunning 145% tariff on most goods from China, but agreed to a 90-day pause for negotiations. The U.S. also came to an agreement with the U.K. earlier in May.

Over the Memorial Day holiday weekend, Trump and European Union leaders announced that the president’s 50% tariff on imports from the E.U., which he announced Friday, are on hold until July 9. That announcement would not have impacted the Board’s survey, which closed on May 19.

The Conference Board said the rebound in confidence this month was broad-based across all ages and income groups.

Consumers’ assessments of the present economic situation also improved, with the exception of their view on job availability, which weakened for the fifth straight month despite another strong U.S. jobs report.

However, less than 25% of respondents said they were worried about losing their jobs, compared with the 50% of respondents who said they were concerned about not being able to buy the things they need or want.

The Labor Department earlier this month reported that U.S. employers added a surprising 177,000 jobs in April and the unemployment rate remained at a low 4.2%.

Write-in responses to the survey showed that tariffs are still consumers’ biggest concern. Inflation is also still weighing on their minds, though some noted that inflation seemed to be easing, along with gas prices.

Earlier in May, the Commerce Department reported that consumer prices rose just 2.3% in March from a year earlier, down from 2.7% in February. Excluding the volatile food and energy categories, core prices rose 2.6% compared with a year ago, below February’s 3%. Economists track core prices because they typically provide a better read on where inflation is headed.

Gas prices have hovered around $3.17 per gallon this month, down from $3.59 a year ago, but up a few pennies from April.

The slowdown in inflation could be a temporary respite until the widespread duties imposed by Trump begin to push up prices in many categories. Most economists expect inflation to start ticking up in the coming months.

Robert Frick, an economist with Navy Federal Credit Union, said that while the tariff rollbacks may have boosted Americans’ confidence this month, that optimism may be fleeting.

“When prices start rising from existing tariffs in a month or two, it will be a sobering reminder that a new inflation fight has just begun,” Frick said.

The Board’s survey Tuesday also showed that Americans’ plans to spend on homes, cars and vacations also increased from April, with significant gains coming after the May 12 China tariff pause.

WASHINGTON (AP) — The Supreme Court on Tuesday rejected the appeal of a Massachusetts student who was barred from wearing a T-shirt to school proclaiming there are only two genders.

The justices left in place a federal appeals court ruling that said it would not second-guess the decision of educators in Middleborough, Massachusetts, to not allow the T-shirt to be worn in a school environment because of a negative impact on transgender and gender-nonconforming students.

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Educators at the John T. Nichols Middle School barred the student from wearing the T-shirt and an altered version with the words “two genders” covered up by tape with the word “censored” written on it.

Justices Samuel Alito and Clarence Thomas dissented.

The court should have heard the case, Alito wrote, noting that “the school permitted and indeed encouraged student expression endorsing the view that there are many genders,” but censored an opposing view.

“This case presents an issue of great importance for our Nation’s youth: whether public schools may suppress student speech either because it expresses a viewpoint that the school disfavors or because of vague concerns about the likely effect of the speech on the school atmosphere or on students who find the speech offensive,” Alito wrote.

The 1st U.S. Circuit Court of Appeals said it was reasonable to predict that the T-shirt will “poison the educational atmosphere” and disrupt the learning environment.

The school district’s decision was in line with a landmark Supreme Court ruling from 1969, Tinker v. Des Moines Independent Community School District, that upheld the right of public school students to wear black armbands to protest the Vietnam War when it did not create a substantial disruption to education.