Tesla’s European Sales Collapse as Stock Surges

Nothing can bring down Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) stock. Not the bad behavior of CEO Elon Musk nor safety problems with its self-driving technology. Not a lack of new models, or the failure of Cybertruck sales. Tesla’s sales in Europe collapsed last year, and it lost substantial ground to rival BYD in the region. Its stock is up 36% in the past six months, while the market is only 9% higher.

The ACEA is the organization monitoring car registrations across the region. It said that Tesla registrations in the European Union, United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland dropped 27% last year to 238,656. BYD’s figures for the same period rose 267% to 187,657.

There is ample evidence that Tesla has the same problem in the United States. Reuters reports Tesla sales in America fell to nearly a four-year low in November of last year. The news service reported, “After years of soaring sales, Tesla deliveries fell for the first time last year amid high borrowing costs that soured consumer sentiment and rising competition, especially in Europe and China, with new and cheaper models from other automakers.”

Tesla does not just face a flood of Chinese electric vehicles (EVs) in many countries. It faces legacy car companies that have spent billions of dollars to enter the EV space. They have barely been successful. However, these companies, as a group, have taken market share as high as 20% in the United States. BYD also sells cars across South America and Southeast Asia.

There is no single reason Tesla’s sales have faltered, and more than one reason the stock has done so well. Based on its market cap of $1.43 trillion, Tesla is the world’s 10th most valuable company.

A bet on Tesla is a bet that it will succeed in the self-driving car space, which means cars in which drivers have nothing to do. The early versions of these are robotaxis. While Tesla is testing these, it is commonly believed that Alphabet’s Waymo has a head start.

Tesla also has the Optimus robots. Musk says that there will eventually be millions of these around the world. He claims they will be able to do complex surgery and that, as they spread, they will “eliminate poverty.”

Investors can forget about Europe.

Tesla Stock Price Prediction and Forecast 2026–2030