Shock for Tesla in the European market

Tesla’s slowdown in Europe continued in October, with new data showing the company losing ground while the wider electric vehicle market accelerated. According to the European Automobile Manufacturers' Association (ACEA), Tesla registered 6,964 vehicles across Europe last month, a steep 48.5 percent decline from the same period last year. In contrast, total EV registrations across the region, including the UK and EFTA countries, rose nearly 33 percent, and overall vehicle registrations increased by 4.9 percent.

This marks the tenth consecutive month of falling Tesla registrations in Europe. Even with the refreshed Model Y arriving in showrooms, the company struggled against fast-growing competition and the continued negative public sentiment toward CEO Elon Musk. EVs overall now make up 16.4 percent of the region’s vehicle market, highlighting how Tesla’s drop is happening despite broader industry momentum.

The October dip adds to a difficult year for Tesla in Europe. From January through October, Tesla’s registrations fell almost 30 percent to 180,688 units, bringing its market share down to 1.6 percent from 2.4 percent a year earlier.

Meanwhile, Chinese manufacturers are rapidly expanding their presence. BYD, which sells both all-electric and hybrid models, saw its European sales jump more than 200 percent to 17,470 units. SAIC, another major Chinese player, posted a 46 percent rise with nearly 24,000 vehicles sold.

Despite the weakening sales in a region known for its strong EV adoption, Tesla’s stock has not been hit hard. On Monday, shares climbed close to 7 percent after Melius Research labeled Tesla a “must-own” company based on its autonomy progress. Analyst Rob Wertheimer wrote that upcoming breakthroughs in autonomous driving and chip development could transform the entire driving landscape, giving Tesla a long-term strategic advantage even as short-term sales weaken.