Key Takeaways
- January EU registrations for Tesla declined 17% year-over-year, totaling 8,075 vehicles
- BYD registered 18,242 units in the EU during January, representing a 165% year-over-year increase
- Tesla (TSLA) shares fell 2.9% on Monday, ending the session at $399.83
- January US EV sales declined 30% compared to last year, though Tesla captured 61% market share
- Analysts maintain a Hold rating on TSLA with a consensus price target of $396.80
January proved challenging for Tesla in Europe, according to newly released registration data. The European Automobile Manufacturers’ Association (ACEA) disclosed that Tesla recorded only 8,075 new vehicle registrations throughout the EU and broader European territories — representing a 17% decline from the 9,733 units registered during the same month last year.
Tesla’s share of the European automotive market contracted to 0.8%, down from 1.0% recorded in January 2025.
In stark contrast, BYD demonstrated explosive growth. The Chinese electric vehicle manufacturer posted 18,242 registrations during January, marking a 165% increase over the 6,884 units from January 2025. This figure represents more than twice Tesla’s registration volume.
Shares of TSLA declined 2.9% during Monday’s trading session, settling at $399.83. The stock extended losses in Tuesday’s pre-market hours, falling an additional 0.21%.
The overall European automotive sector faced headwinds as well. Total registrations across the EU fell 3.9% in January to 799,625 vehicles — marking the lowest monthly figure in five months. Key markets including Germany and France posted particularly weak results.
Traditional automakers experienced mixed results. Volkswagen saw registrations decline 3.8%, BMW dropped 3%, and Renault fell 15%. Stellantis was a notable exception, posting a 7% increase.
Chinese Automaker Expands European Dominance
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 that position for multiple consecutive years.
Tesla’s European market presence reached a multi-year low of 1.4% last year, and the latest January figures indicate continued competitive pressure.
The battery electric vehicle (BEV) segment did show growth in the EU, with market share climbing to 19.3% in January from 14.9% one year earlier — demonstrating overall category expansion. However, Tesla hasn’t maintained pace with competing manufacturers in this region.
Across the Atlantic, challenges persisted. US electric vehicle sales plummeted 30% year-over-year in January, partially attributed to the elimination of the $7,500 federal tax credit at September’s end. December saw average EV transaction prices drop 3% as manufacturers implemented aggressive pricing strategies.
Domestic Market Share Provides Silver Lining
One metric favored Tesla’s position. Despite declining overall sales volumes, the company’s US market share expanded to approximately 61% in January, up from 57% in December — and surpassing the sub-50% levels observed when the federal tax credit remained available.
In China, Tesla recently introduced zero-interest financing programs, sparking intense competition among automakers regarding financing terms. Chinese government authorities subsequently issued pricing compliance directives prohibiting manufacturers from selling vehicles below production costs.
Tesla’s stock has declined approximately 8% since the beginning of the year but maintains a 22% gain over the trailing twelve months, outperforming the S&P 500 by roughly seven percentage points.
Analyst consensus on TSLA currently stands at Hold, derived from 12 Buy ratings, 11 Hold ratings, and 7 Sell ratings among 30 analysts covering the stock over the past three months. The average analyst price target of $396.80 suggests approximately 1% downside from present levels.
The electric vehicle manufacturer intends to allocate approximately $20 billion toward new equipment purchases this year, representing a significant increase from its historical annual capital expenditure of under $10 billion.
