Key Takeaways
- European Tesla registrations declined 17% year-over-year to 8,075 vehicles in January
- BYD’s registrations jumped 165% to reach 18,242 units during the identical timeframe
- TSLA shares declined 2.9% on Monday, settling at $399.83
- American EV market experienced a 30% year-over-year decline in January sales
- Analyst consensus maintains Hold rating with $396.80 mean price target
January’s European registration figures paint a concerning picture for Tesla. According to ACEA data, the electric vehicle manufacturer registered merely 8,075 vehicles throughout the EU and broader European territory — marking a 17% decline compared to the 9,733 units recorded twelve months prior. The company’s market presence weakened from 1.0% to 0.8% during this period.
Meanwhile, BYD demonstrated remarkable momentum. The Chinese electric vehicle manufacturer registered 18,242 vehicles — representing a 165% surge from the previous year’s 6,884 units. This performance puts BYD at more than twice Tesla’s registration volume in the region.
TSLA stock retreated 2.9% during Monday’s session, finishing at $399.83, followed by an additional 0.21% decline in Tuesday’s pre-market activity.
European EV Landscape Undergoes Transformation
The overall European automotive sector experienced headwinds in January. Total vehicle registrations contracted 3.9% to 799,625 units — marking the lowest figure in five months. Germany and France represented particularly weak markets.
Competing manufacturers also encountered difficulties. Volkswagen’s registrations decreased 3.8%, BMW saw a 3% reduction, and Renault experienced a 15% decline. Stellantis bucked the trend with a 7% increase.
Battery electric vehicle penetration across the EU expanded to 19.3%, rising from 14.9% year-over-year. While the electric segment continues expanding, Tesla isn’t securing its proportionate share of European growth.
This performance extends Tesla’s challenging 2025 trajectory in the region, where market share reached multi-year lows of 1.4% and BYD successfully surpassed it as the global leader in all-electric vehicle sales.
Domestic Market Shows Mixed Signals
In the United States, EV sales contracted 30% year-over-year throughout January. The September expiration of the $7,500 federal tax incentive contributed significantly, prompting manufacturers to implement price reductions. Average EV transaction prices decreased 3% in December.
Despite declining volumes, Tesla‘s domestic market share expanded to 61% in January from December’s 57% — substantially exceeding the sub-50% levels observed during the tax credit period.
Chinese Operations and Analyst Outlook
Within China, Tesla introduced zero-interest financing options last month, triggering widespread competitive financing initiatives. Chinese authorities subsequently released guidance prohibiting manufacturers from pricing vehicles below manufacturing costs.
Tesla shares have declined approximately 8% year-to-date while maintaining a 22% gain over the trailing twelve months, outperforming the S&P 500 by roughly seven percentage points.
Wall Street maintains a consensus Hold recommendation — comprising 12 Buy ratings, 11 Hold ratings, and 7 Sell ratings from 30 covering analysts. The $396.80 average price target suggests approximately 1% downside from present trading levels.
The company anticipates allocating approximately $20 billion toward capital equipment investments this year, significantly exceeding its historical sub-$10 billion annual expenditure levels.
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