TLDR
- Tesla’s European sales dropped 48.5% year-over-year in October with just 6,964 vehicles registered
- BYD outsold Tesla in Europe with 17,470 vehicles sold, marking a 206.8% increase from last year
- Tesla’s European market share fell from 1.3% to 0.6%, while BYD’s rose from 0.5% to 1.6%
- The sales decline adds pressure as Tesla faces a three-year low in Chinese sales
- Wall Street analysts give Tesla a Hold rating with an average price target suggesting 8% downside
Tesla’s European operations took a sharp hit in October. The company registered only 6,964 new vehicles across the European Union, Euro free trade region, and the UK.
This represents a 48.5% decline compared to the same month last year. The numbers come from the European Automobile Manufacturers Association.
Tesla’s market share in the region dropped to 0.6% in October. That’s down from 1.3% a year earlier.
Meanwhile, Chinese competitor BYD posted strong gains. The company sold 17,470 vehicles in Europe during October, up 206.8% year-over-year.
BYD now holds a 1.6% market share in the region. That compares to just 0.5% in October 2024.
The overall European car market grew 4.9% to 1.09 million units in October. Hybrid electric vehicles remained the largest segment with 373,171 units sold, up 7.5%.
Tesla Struggles Across Multiple Markets
Tesla’s European troubles mirror challenges elsewhere. The company’s China sales hit a three-year low in October.
Competition from local manufacturers like Nio and Li Auto has intensified. An ongoing price war and weaker domestic economy add to the headwinds.
Tesla shares fell about 1% during early trading Tuesday following the European sales data. The stock had rebounded in September after launching the revamped Model Y.
Recent changes to Tesla’s lineup haven’t stimulated demand. New low-cost versions of the Model Y and Model 3 failed to reverse the downward trend.
CEO Elon Musk’s political affiliations continue to affect sales. A recent Global EV Alliance poll found 41% of EV drivers globally would avoid Tesla over political concerns.
The avoidance is particularly strong in the U.S. and Germany, according to the survey.
BYD Gains Ground Despite Tariffs
BYD has ramped up international expansion efforts. The company continues selling in Europe despite steep import taxes imposed on Chinese EVs in 2024.
BYD partially avoided those tariffs through its plug-in hybrid offerings. This gives BYD an advantage as hybrids represent the biggest portion of the European market.
European carmakers also posted gains. Volkswagen and Stellantis expanded sales by single digits year-over-year.
Renault saw stronger growth at 10.6%. Germany and the UK drove overall market increases.
Tesla is banking on robotaxis and AI technology to turn things around. The company rolled out the latest version of its full self-driving software last week.
Wall Street analysts currently rate Tesla stock as a Hold. The consensus is based on 14 Buy ratings, 10 Holds, and 10 Sells from 34 analysts over the past three months.
The average price target of $383.37 suggests over 8% downside from current trading levels. Tesla faces increased competition from Alphabet’s Waymo in the self-driving race.
BYD’s October registrations in Europe reached 17,470 vehicles, marking a 206.8% increase year-over-year as the company captured a 1.6% market share in the region.
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