Key Takeaways
- Tesla recorded 8,075 new vehicle registrations in the EU during January, representing a 17% year-over-year decline
- BYD experienced explosive growth with 18,242 EU registrations, marking a 165% increase compared to last year
- TSLA shares declined 2.9% to close at $399.83 on Monday’s trading session
- January saw a 30% year-over-year drop in US EV sales, though Tesla captured 61% market share domestically
- Analyst consensus rates TSLA as Hold with a price target averaging $396.80
January’s European vehicle registration data reveals challenging conditions for Tesla. According to the European Automobile Manufacturers’ Association (ACEA), Tesla recorded merely 8,075 new vehicle registrations throughout the EU and broader European territory—representing a 17% decline from the 9,733 units registered during the same month last year.
🚨 BREAKING 🚨
📊 European car registration figures for January are fresh off the press!
📉New EU #car registrations decreased by 4% compared to the same period last year.
January 2026 market share update👇
🔋Battery-electric cars registered 19% of the EU market share… pic.twitter.com/tQ1TvxSwSX
— ACEA (@ACEA_auto) February 24, 2026
The electric vehicle manufacturer’s European market presence contracted to 0.8% from the 1.0% it held in January 2025.
In stark contrast, BYD demonstrated remarkable momentum. The Chinese electric vehicle producer registered 18,242 vehicles during this timeframe, representing a 165% jump from the 6,884 units recorded in January 2025. BYD’s registration volume exceeded Tesla’s by more than double.
TSLA shares experienced a 2.9% decline on Monday’s session, settling at $399.83. The stock continued its downward trajectory with an additional 0.21% drop during Tuesday’s pre-market hours.
The overall European automotive market faced headwinds as well. Aggregate new-car registrations decreased 3.9% in January to reach 799,625 units—marking the lowest figure in five months. Key markets including Germany and France showed particular weakness.
Traditional automakers also struggled during the period. Volkswagen experienced a 3.8% registration decline, BMW saw a 3% decrease, and Renault suffered a 15% drop. Stellantis emerged as an exception, posting a 7% increase.
BYD Expands European Dominance Over Tesla
BYD’s impressive European performance follows its achievement of surpassing Tesla as the global leader in all-electric vehicle sales during 2025. Tesla had maintained this position for multiple consecutive years.
Tesla’s European regional market presence reached a multi-year low of 1.4% throughout last year, with January’s figures indicating continued competitive pressure.
Battery electric vehicle (BEV) market penetration in the EU expanded to 19.3% in January, up from 14.9% during the comparable period last year—demonstrating overall EV sector growth. However, Tesla appears unable to match the momentum of competing manufacturers in this territory.
Domestically, conditions proved equally challenging. US EV sales contracted 30% year-over-year in January, partially attributed to the elimination of the $7,500 federal purchase incentive at September’s end. Average EV transaction prices decreased 3% in December as manufacturers implemented pricing reductions.
Tesla Maintains Domestic Market Position
One metric favored Tesla’s position. Despite declining sales volume, the company’s US market share increased to approximately 61% in January, rising from 57% in December—and exceeding the sub-50% levels observed when the tax incentive remained available.
In the Chinese market, Tesla recently introduced zero-interest financing promotions, sparking a widespread automotive financing competition among manufacturers. Chinese regulatory authorities subsequently issued pricing compliance directives preventing automakers from pricing vehicles below manufacturing costs.
Tesla stock has declined approximately 8% year-to-date but maintains a 22% gain over the trailing twelve months, surpassing the S&P 500’s performance by roughly seven percentage points.
Analyst consensus on TSLA stands at Hold, derived from 12 Buy ratings, 11 Hold ratings, and 7 Sell ratings among 30 analysts surveyed over the past three months. The consensus price target of $396.80 suggests approximately 1% downside from present levels.
Tesla has allocated approximately $20 billion toward new equipment acquisitions this year, doubling its typical annual capital expenditure of under $10 billion.
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