<div id="readability-page-1"><p>Tesla (TSLA) is ending a painful year in Europe. While the rest of the continent is buying more electric cars than ever, Tesla's sales are heading in the opposite direction. Outside of Norway, where the company still dominates, the numbers in France and Sweden are nothing short of a collapse.</p><h3>Claim 70% Off TipRanks This Holiday Season</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>Here is the data behind Tesla's European slump as of January 2, 2026.</p> <h2><strong>Tesla Loses Ground while the Rest of the EV Market Grows</strong></h2> <p>The most alarming part of Tesla's European performance isn't just that sales are down, it's that everyone else is growing. Industry-wide, registrations for battery-electric vehicles in Europe rose by 27% through late 2025. In that same window, Tesla's market share across the EU and UK shrank from 2.4% to just 1.7%.</p> <p>In France, Tesla only managed to register 1,942 cars in December.<sup></sup> For a company that once led the market, being outperformed by local brands and Chinese newcomers like BYD has become the new normal. Critics say the Model 3 and Model Y, while popular, are becoming &#34;stale&#34; in a market that now offers dozens of newer, cheaper alternatives.</p> <h2><strong>Politics and a Stale Lineup Hit the Bottom Line</strong></h2> <p>It's not just about the cars; it's about the brand. Analysts at Schmidt Automotive Research and data from Yale suggest that Elon Musk's high-profile support for right-wing politicians has alienated Tesla's core customer base in Europe.<sup></sup> In Germany and the UK, polls show that Musk's public image has turned &#34;unfavorable,&#34; causing environmentally conscious buyers to jump ship to competitors.<sup></sup></p> <p>While Tesla recently introduced slightly cheaper variants of its main models, they haven't been enough to stop the bleeding. Many buyers are reportedly waiting for the rumored &#34;Juniper&#34; refresh of the Model Y, while others are simply moving to brands like BYD (BYDDF), which actually outsold Tesla in pure electric registrations in Europe for the first time earlier this year.</p> <h2><strong>What Is Tesla's Plan to Fix This Issue?</strong></h2> <p>Tesla's plan to fix this relies almost entirely on software. The company has circled February 2026 as the target for launching &#34;Full Self-Driving&#34; (FSD) in Europe. To do this, they are trying to bypass slow EU-wide rules by getting a &#34;national exemption&#34; from the Dutch vehicle authority, RDW.</p> <p>The goal has a domino effect: if the Netherlands approves it, other countries can follow immediately. However, the RDW recently clarified that they have only agreed to a <em>demonstration</em> in February, not a guaranteed approval. </p> <p>Tesla has already logged over 1 million kilometers of testing in 17 European countries to prove the system is safe, but until the regulators sign off, Tesla remains a car company with a sales problem rather than the AI powerhouse Musk promised.</p> <h2><strong>Is Tesla Stock a Buy, Hold, or Sell?</strong></h2> <p>Analysts remain sidelined on Tesla stock. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 11 Holds, and nine Sell ratings. The average Tesla price target of $394.07 implies 12.4% downside potential from current levels.</p></div>

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<p>Tesla's stock remains stable despite a significant 70% sales decline in key European markets, where overall electric vehicle sales are increasing. The company's market share in the EU and UK has dropped from 2.4% to 1.7%, with local brands and competitors like BYD outperforming Tesla. Analysts attribute the decline to a stale product lineup and Elon Musk's controversial political affiliations, which have alienated environmentally conscious consumers. Tesla plans to address these issues with a software update targeting Full Self-Driving capabilities in February 2026, but regulatory approval remains uncertain. Analysts currently rate TSLA stock as a Hold, with a price target suggesting potential downside.</p>

- Tesla is experiencing a significant decline in sales in Europe, with its market share dropping from 2.4% to 1.7% amid a 27% growth in the overall electric vehicle market.  
- The company's struggles are compounded by a shift in consumer sentiment due to Elon Musk's political affiliations, prompting customers to turn to competitors like BYD.  
- Tesla's strategy to address this involves launching "Full Self-Driving" technology in February 2026, contingent on obtaining necessary regulatory approvals, while analysts maintain a cautious stance on TSLA stock.

Tesla Stock Holds Steady Despite a 70% Sales Collapse in Key European Markets