Tesla (NASDAQ:TSLA) faced a sharp decline in European and UK sales in January, as increased competition from Chinese automakers and European legacy brands pressured the EV giant.
Key Takeaways

Tesla’s European Market Share Falls

Registrations dropped 45.2% year-over-year to 9,945 units in the EU, EFTA, and the UK.
Market share shrank from 1.8% to 1%, according to the European Automobile Manufacturers’ Association.

Broader EV Market Gains Traction

Battery EVs’ (BEVs) market share rose from 10.9% to 15%, despite an overall 2.1% decline in new car registrations.
BEV sales surged 34% to 124,341 units, while petrol car registrations dropped 18.9%.

Chinese and European Rivals Outperform Tesla

SAIC Motor (SS:600104) sales jumped 37%, securing a 2.3% market share, outpacing Tesla.
Volkswagen (ETR:VOWG_p) sales grew 14.9%, driven by expanding EV offerings.
Toyota (NYSE:TM) and Renault (EPA:RENA) also saw sales gains, particularly in hybrid and premium EV segments.

Why Tesla is Struggling in Europe

Price War with Chinese EV Makers

Chinese automakers are undercutting Tesla on pricing while offering competitive tech features.

Increased Hybrid Competition

Toyota and Volkswagen are leveraging hybrid models, appealing to cost-conscious consumers.

Brand Image Concerns

Tesla’s first annual sales decline in 2024 and CEO Elon Musk’s controversies may be weighing on consumer sentiment.

Investor Insights
Tesla’s falling sales in key markets highlight growing competitive risks for the company. To track how Tesla’s financials are evolving, investors can analyze historical earnings data and compare Tesla’s financial growth metrics with its rising competitors.