Tesla Stock: European Sales Plunge Amid Market Share Decline

Tesla's European sales have plummeted by 40 percent in February, a significant setback for the electric vehicle manufacturer that comes despite an overall 26.1 percent growth in Europe's EV market during the same period. This dramatic decline has reduced Tesla's market share in the region from 2.8 percent last year to just 1.8 percent currently. Industry observers attribute this downturn to several factors, including Tesla's aging product lineup compared to newer, more affordable offerings from Chinese competitors, as well as CEO Elon Musk's controversial political activities that have alienated some consumers. Despite these concerning European sales figures, Tesla's stock has shown resilience, with shares rising 1.7 percent in premarket trading Tuesday as the company continues its recovery from recent steep declines.

Chinese Competition Intensifies Pressure

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Adding to Tesla's European challenges, Chinese rival BYD is planning a massive expansion into the European market, potentially establishing a third manufacturing facility in Europe with Germany as the favored location. When combined with existing plants in Hungary and Turkey, BYD could produce up to 500,000 vehicles annually at full capacity. According to S&P Global Mobility projections, BYD's European sales could more than double to 186,000 vehicles by 2025 and approach 400,000 units by 2029, further intensifying competitive pressure on Tesla's already weakened position in the European market.