Tesla (TSLA) Stock: The EU Numbers That Investors Can’t Ignore

TLDR

  • Tesla EU registrations fell 17% in January to 8,075 units
  • BYD registrations surged 165% to 18,242 units in the same period
  • TSLA dropped 2.9%, closing at $399.83 Monday
  • US EV sales fell 30% year-over-year in January
  • Wall Street rates TSLA a Hold with a $396.80 average price target

Tesla’s January EU registration numbers landed with a thud. The ACEA reported just 8,075 new Tesla vehicles registered across the EU and wider European region — a 17% drop from 9,733 units a year earlier. Market share slipped to 0.8%, down from 1.0% in January 2025.

TSLA Stock Card
Tesla, Inc., TSLA

BYD told a very different story. The Chinese automaker posted 18,242 registrations — up 165% from 6,884 units the prior year. That’s more than double Tesla’s count in the same region.

TSLA stock fell 2.9% Monday, closing at $399.83, and was down a further 0.21% in Tuesday pre-market trading.

Europe’s EV Market Is Shifting

The broader EU car market was soft in January. Total registrations fell 3.9% to 799,625 units — a five-month low. Germany and France were among the weaker spots.

Other automakers felt the pressure too. Volkswagen registrations fell 3.8%, BMW dropped 3%, and Renault declined 15%. Stellantis was the exception, posting a 7% gain.

BEV market share across the EU rose to 19.3%, up from 14.9% a year ago. The EV segment is growing — Tesla just isn’t capturing that growth in Europe.

This follows a rough 2025 for Tesla in the region, where its market share hit a multi-year low of 1.4% and BYD officially overtook it as the world’s best-selling all-electric brand.

US Sales Weak, But Market Share Holds

Back home, US EV sales dropped 30% year-over-year in January. The expiry of the $7,500 federal purchase tax credit at the end of September played a role, pushing automakers to cut prices. Average EV selling prices fell 3% in December.

Tesla’s US market share actually climbed to 61% in January, up from 57% in December — and well above the sub-50% levels seen when the tax credit was active.

China and Wall Street

In China, Tesla launched zero-interest loan offers last month, sparking a broader financing war. Chinese regulators have since issued guidance barring automakers from pricing below production costs.

Tesla stock is down around 8% year-to-date but remains up 22% over the past 12 months, ahead of the S&P 500 by roughly seven percentage points.

Wall Street’s consensus is Hold — 12 Buys, 11 Holds, and 7 Sells from 30 analysts. The average price target of $396.80 implies about 1% downside from current levels.

Tesla plans to spend around $20 billion on capital equipment this year, well above its typical sub-$10 billion annual spend.

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Source: https://blockonomi.com/tesla-tsla-stock-the-eu-numbers-that-investors-cant-ignore/