Tesla's European Sales Decline Continues
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy TSLA?
Source: Newsfilter
- Sales Decline: Tesla's new car registrations in Europe fell 17% year-on-year to 8,075 in January, marking the 13th consecutive month of declining sales, indicating significant challenges in a competitive market.
- Market Share Reduction: Tesla's market share across the EU, UK, Switzerland, Norway, and Iceland dropped to 0.8%, down from 1% a year ago, reflecting increased consumer choices and the lack of new models from Tesla.
- Intensifying Competition: BYD's market share in Europe surged to over 1.9% in January, a 165% year-on-year increase, demonstrating the strong growth of Chinese EV brands and intensifying pressure on Tesla.
- Used Car Market Impact: The influx of first-generation Tesla models into the used car market has driven down second-hand prices, which not only affects new car sales but may also weaken the brand's image, compounding Tesla's challenges in Europe.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 403.320
Low
25.28
Averages
401.93
High
600.00
Current: 403.320
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Increased Capital Expenditure: Tesla plans to more than double its capital expenditures from $8.5 billion to $20 billion in 2023, focusing on AI, robotics, and driverless technologies, reflecting the company's ambitious growth strategy but also introducing higher operational risks.
- Product Line Shift: The company will cease production of Model S and X vehicles to focus on manufacturing Optimus robots at its California factory, marking a significant strategic pivot that could impact the profitability of its EV business.
- Market Valuation Pressure: With Tesla trading at nearly 400 times its trailing earnings, investor expectations for future growth are extremely high, and failure to meet these expectations could lead to a significant sell-off in the stock, increasing investment risks.
- Long-Term Development Goals: Musk aims to launch Optimus robots to the public by 2027, and while this vision holds potential, the risks associated with the transition could adversely affect the company's short-term financial performance.
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- Significant Investment Return: Charlie Munger invested $230 million in BYD in 2008 for a 10% stake, marking it as a successful investment for Berkshire Hathaway; however, the firm began exiting its position in 2022 and fully sold its stake by Q3 2025, just before a sales decline.
- Sales Decline Raises Concerns: According to Trung Phan on social media, BYD's sales dropped in the first two months of 2026, raising widespread market concern, particularly from Tesla CEO Elon Musk, who expressed worries about the trend.
- Market Sensitivity: Munger noted in an interview that he had never made a better investment at Berkshire than BYD, highlighting the company's influence in the EV market, yet the sales decline could impact its future market performance.
- Strategic Exit Timing: Berkshire's exit coincided with BYD's sales drop, indicating investors' sensitivity to market dynamics and risk aversion, which may affect other investors' confidence and market expectations.
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- Productivity Enhancement: Xiaomi is trialing humanoid robots in its electric vehicle production lines, with two robots completing 90% of tasks in three hours, significantly boosting efficiency and indicating the company's proactive exploration of automation.
- Technical Challenges Addressed: The company's president noted that the robots must keep pace with a new car rolling off the assembly line every 76 seconds, demonstrating Xiaomi's commitment and challenges in integrating robotic technology into production processes.
- Future Outlook: Xiaomi plans to enable humanoid robots to replace certain human tasks and accomplish work traditionally beyond human capability, signaling the company's long-term strategy in smart manufacturing.
- Market Potential: Analysts forecast a global humanoid robot market of $9 trillion by 2050, with China accounting for over 60%, highlighting Xiaomi's strategic foresight in this rapidly growing market.
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- Productivity Enhancement: Xiaomi has trialed its self-developed humanoid robots in its electric vehicle factory, where two robots can complete 90% of the work in three hours, significantly boosting production efficiency and demonstrating the company's commitment to automation.
- Integration Challenges: President Lu Weibing highlighted that the robots must keep pace with the assembly line, where a new car rolls off every 76 seconds, emphasizing the challenges of integrating robots into production lines, with future potential to replace humans for certain tasks.
- Market Potential Outlook: Analysts at RBC Capital Markets forecast a global total addressable market for humanoids of $9 trillion by 2050, with China accounting for over 60%, indicating that Xiaomi's strategic positioning in this sector has vast growth prospects.
- Intensifying Industry Competition: With companies like Xiaomi, XPeng, and Honor expanding into robotics, competition is intensifying, and while Lu remains bullish on the robotics market, he acknowledges that it is still in its early stages.
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