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Feb 25 - Tesla (TSLA, Financial) experiences rising suspicious market conditions because its European new car registrations show a major decline during January 2025. The European Automobile Manufacturers Association data indicates how Tesla's new car registrations decreased by more than 50% from 15,130 in January 2023 to the lower number of 7,517 this January.
The overall growth for battery electric vehicle registrations reached 34% across the European Union, with 124,341 units, while this specific industry segment for Tesla saw a significant decline. Categorically, the EU saw a total decrease in car registrations due to the 27% drop in diesel and 19% decline in petrol with 831,201 units sold. Battery electric vehicles showed substantial growth in market share up to 15% while consumers started preferring battery electric options instead of conventional vehicles. Volkswagen (VOW3, Financial) kept its lead with 229,898 registrations but Stellantis NV (STLA, Financial) declined 18% to 133,506 units and Renault Group (RNO Financial) rose 5% to reach 90,362 units.
Tesla's shares fell 5% on Tuesday morning as investors assessed whether the decline reflects a temporary fluctuation or signals deeper challenges in Europe. Despite increasing EU market opportunities, analysts warn about the need to rethink Tesla's European strategic approach because of intensified market competition
This article first appeared on GuruFocus.