Tesla (NASDAQ: TSLA) new car registrations in Europe and the UK plummeted in January, falling 45.2% year-over-year to 9,945 units, data from the European Automobile Manufacturers Association revealed on Tuesday.
The electric vehicle maker’s market share in the European Union, the European Free Trade Association, and the UK slipped to 1%, down from 1.8% a year earlier. The sharp decline highlights growing challenges for Tesla as it faces stiffer competition from Chinese rivals and a stronger European manufacturers push into the EV sector.
The broader car market also faced headwinds in January, with total new car registrations falling 2.1% year-over-year. Key markets like France, Italy, and Germany drove the decline.
However, battery electric vehicles (BEVs) stood out, gaining popularity across the region. Their market share rose to 15% from 10.9% a year earlier, as sales jumped 34% to 124,341 units. Even as EV sales soared, Tesla failed to tap into the region’s growing appetite for electric cars.
Meanwhile, petrol car registrations slid 18.9% to 290,301 units.
Volkswagen posted a robust 14.9% sales increase, the highest among its peers, thanks to its expanding EV lineup. Toyota (NYSE: TM) sold more of its Luxury Lexus line, while Renault also posted higher sales. Meanwhile, Chinese EV maker SAIC Motor Corp outpaced Tesla (NASDAQ: TSLA) with a nearly 37% jump in sales, claiming a 2.3% market share—more than double Tesla’s slice of the pie.
Tesla’s sales slump reflects mounting pressure from multiple fronts. A fierce price war with Chinese competitors has put pressure on the company, while the rising popularity of hybrid vehicles has eaten into its EV dominance.
In 2024, Tesla recorded its first-ever annual decline in deliveries, a troubling milestone for the EV pioneer. Analysts also point to potential damage to the company’s brand image, linked to CEO Elon Musk, as a factor weighing on sales. As European and Chinese automakers ramp up their EV offerings, Tesla faces an uphill battle to regain its footing in the region.
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Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market. Read Full Bio
