Tesla stock crashes further as Europe sales slump 45% in January
Tesla’s shares fell sharply Tuesday following data showing that European and British sales fell sharply in January, as the electric carmaker grappled with increased competition from Chinese rivals and a greater push into the sector from European manufacturers, News.Az reports citing Investing.
At 11:30 AM ET, Tesla's stock was down 9%. It is now down 18% year-to-date.
Tesla’s new car registrations in the European union, the European Free Trade Association and the UK slid 45.2% year-on-year to 9,945 registrations. The company’s market share also slid to 1% from 1.8% a year earlier, data from the European Automobile Manufacturers' Association showed on Tuesday.
The sales drop came amid a 2.1% overall y-o-y drop in new car registrations in January, with declines in France, Italy, and Germany. But battery EVs were seen gaining market traction in the region, with the market share of BEVs rising to 15% from 10.9% a year ago. Overall new BEV sales grew by 34% to 124,341 units, while petrol car registrations slid 18.9% to 290,301 units.
But Tesla (NASDAQ:TSLA) appeared to have failed to capitalize on increased popularity of EVs in the region.
Chinese EV maker SAIC Motor Corp Ltd (SS:600104) clocked a nearly 37% jump in sales, pulling well ahead of Tesla. The company also held a much bigger market share of 2.3%.
Tesla bear Gordon Johnson of GLJ Research said the news suggests the first quarter is shaping up "horribly" for the EV maker. "In short, this is shaping up as an absolute disaster of a delivery quarter for TSLA," Johnson said.
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