All members of the European Union must boost their defence spending to fill gaps in the bloc's capabilities and secure continued support for Ukraine, Germany's new Chancellor Friedrich Merz said in Paris on Wednesday.

Merz won in a second round of voting after failing to secure an absolute majority in an earlier round.

Germany's parliament will hold a second vote on Tuesday on backing Friedrich Merz as chancellor after the veteran conservative failed to secure enough support in a first round, throwing politics in Europe's largest economy into disarray.

Conservative Friedrich Merz is set to be sworn in on Tuesday as Germany's new chancellor at a critical juncture as the economy battles its longest post-war downturn, relations with top security ally the United States fray and the far-right surges.

Demand for the U.S. automaker’s vehicles slid amid stronger competition from Europe and China and rising anger at Elon Musk’s political forays.

Tesla's sales volume in Germany nearly halved in April, German road traffic agency KBA said on Tuesday, even as sales of battery electric vehicles rose overall.

Tesla (TSLA) sales in Germany continue to fall in April despite the new Model Y production ramp at Gigafactory