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Tesla’s shares fell modestly early Tuesday as new data shows its sales plunged year-over-year in Europe, even as its China sales have hit a three-year low.
Electric vehicle maker Tesla’s (TSLA) sales troubles appear not to be over, as its sales in the European Economic Area, the UK, and Switzerland tumbled 48.5% in October compared to a year ago. TSLA fell about 1% during early trading on Tuesday.
TipRanks Black Friday Sale
Tesla’s sales had rebounded in September, spurred by the launch of the revamped Model Y. However, the latest plunge adds to the pressure from China, where the EV producer’s sales dropped to a three-year low in October.
The decline in China came amid fierce rivalry from Chinese automobile manufacturers such as Nio (NIO) and Li Auto (LI), an ongoing price war, and a weaker domestic economy.
China’s BYD Keeps the Fire Burning
In Europe, competition from Chinese rivals remains palpable. In October, while Tesla’s sales fell dramatically, BYD’s (BYDDY) registrations surged 206.8%, according to the latest data from the European Automobile Manufacturers’ Association.
As a result, BYD’s market share rose to 1.6% in October, up from 0.5% during the same period last year. European carmakers Volkswagen (VWAGY) and Stellantis (STLA) also expanded their sales year-over-year by single digits, with Renault (RNLSY) going further with a 10.6% growth.
This came amid an overall rise in EU EV sales. Sales in the region grew by 5.8% to 1.09 million vehicles sold, with more cars sold in Germany and the UK.
Is Tesla Avoidance a Factor?
The new results come as a recent poll by the Global EV Alliance found that 41% of EV drivers globally would avoid Tesla over political concerns. The avoidance is much more prominent in the U.S. and Germany, the survey found.
However, Tesla, which is also in fierce competition with Alphabet’s (GOOGL) Waymo in the self-driving race, is looking to bank on its robotaxis and AI efforts. Last week, the American carmaker rolled out the latest version of its full self-driving technology.
Is Tesla Stock a Buy or Sell?
On Wall Street, Tesla’s shares currently have a Hold consensus rating from analysts. This is based on 14 Buys, 10 Holds, and 10 Sells issued by 34 analysts over the past three months.
Moreover, at $383.37, the average TSLA price target indicates over 8% downside risk from the current trading level.
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