Tesla (TSLA) Stock: Sales Drop 48% in Europe While BYD Takes The Lead

TLDR

• Tesla registered 6,964 vehicles in Europe during October, down 48.5% from last year
• BYD sold 17,470 vehicles in the same period, up 206.8% year-over-year
• Tesla’s European market share fell to 0.6% while BYD’s climbed to 1.6%
• China sales also declined to a three-year low for Tesla
• Analysts maintain Hold rating with price target suggesting 8% downside potential

Tesla’s European sales collapsed in October. The electric vehicle maker registered just 6,964 new cars across the EU, Euro free trade region, and the UK.

That’s a 48.5% drop compared to October 2024. The data comes from the European Automobile Manufacturers Association.

Tesla, Inc., TSLA

Tesla’s market share in Europe shrunk to 0.6%. A year ago, it stood at 1.3%.

BYD posted the opposite results. The Chinese automaker sold 17,470 vehicles in Europe during October, jumping 206.8% from the prior year.

BYD now commands a 1.6% market share in the region. That’s up from 0.5% in October 2024.

The European car market expanded 4.9% overall to 1.09 million units. Hybrid electric vehicles led sales with 373,171 units, growing 7.5%.

Multiple Markets Show Weakness

Tesla faces headwinds beyond Europe. October sales in China dropped to a three-year low.

Local competitors like Nio and Li Auto have gained ground. A price war and slower economic growth compound the challenges.

Tesla shares dipped about 1% in early Tuesday trading after the European data release. The stock had recovered in September following the updated Model Y launch.

New affordable versions of the Model Y and Model 3 haven’t boosted demand. Sales continue trending downward despite the product refresh.

Political concerns may be affecting buyer decisions. A Global EV Alliance poll showed 41% of EV drivers would avoid Tesla for political reasons.

The sentiment is strongest in the U.S. and Germany, the survey revealed.

BYD Expands Despite Trade Barriers

BYD has accelerated its international push. European sales continue growing despite hefty import taxes on Chinese EVs imposed in 2024.

The company’s plug-in hybrid lineup helps circumvent some tariffs. Hybrids represent the largest segment in Europe’s car market.

European brands also gained ground. Volkswagen and Stellantis each grew sales by single digits year-over-year.

Renault saw a 10.6% increase. Germany and the UK drove most of the regional growth.

Tesla is focusing on autonomous technology and AI. The company released its newest full self-driving software last week.

It faces competition from Alphabet’s Waymo in the robotaxi space. That rivalry is intensifying as both companies push autonomous driving forward.

Wall Street analysts give Tesla a Hold rating. The consensus includes 14 Buy ratings, 10 Holds, and 10 Sells from 34 analysts.

The average price target sits at $383.37. That implies over 8% downside from current levels.

BYD’s European expansion continues with 17,470 vehicles registered in October, capturing 1.6% market share as Tesla’s presence in the region weakens.

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