This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) lost ground in Europe in November as BYD (BYDDF) surged, according to Tuesday data from the European Automobile Manufacturers’ Association.
ACEA showed Tesla’s November deliveries across the EU, EFTA and the U.K. fell 11.8% year on year to 22,801 vehicles.
BYD’s November sales jumped 221.8% to 21,133 units, lifting its market share to 2% from 0.6% a year earlier.
Tesla’s market share slipped to 2.1% from 2.5% the prior year, though it improved from 0.6% in October.
The overall European new vehicle market grew 2.4% to about 1.08 million registrations, driven by battery and hybrid demand; hybrids held roughly 34.6% of registrations.
Analysts say BYD’s hybrid and lower-priced models are resonating with cost-conscious buyers, putting pressure on Tesla’s pricing and growth in the region.
Tesla faces mounting competition from Chinese and European makers as it seeks to regain momentum, market watchers say.
Shares of Tesla climbed about 1.5% on Monday trading as investors weigh near-term sales weakness against longer-term product bets.
Investors will monitor December sales and delivery numbers for signs of recovery.
