New York, January 6, 2026, 10:10 (EST) — Regular session
Tesla (TSLA) shares fell 3.2% to $437.13 in morning trade on Tuesday after German road traffic agency KBA said the automaker sold 2,032 cars in Germany in December, down 48% from a year earlier. KBA said Tesla’s 2025 sales in Germany fell 48.4% to 19,390 vehicles; the stock has traded between $437.05 and $452.25 after ending Monday at $451.67. 1
Tesla’s UK registrations — a proxy for sales — slid more than 29% in December to 6,323 vehicles, as Chinese rival BYD’s registrations jumped nearly five-fold to 5,194, industry data showed. Tesla remained Britain’s top-selling EV brand for the month, but the drop echoed other European markets where Tesla has been hit by competition, an ageing lineup and backlash linked to CEO Elon Musk’s political stance; Tesla also ceded its crown as the world’s top EV maker to BYD after reporting a second straight annual decline in sales. Society of Motor Manufacturers and Traders chief executive Mike Hawes said “the pace is still too slow and the cost to industry too high,” while Auto Express’ Steve Walker said Chinese entrants are “creating fierce competition that will continue to force prices down.” 2
The pressure on Tesla’s core car business lands as investors look for the next growth engine, with autonomous driving and artificial intelligence taking center stage at CES 2026 in Las Vegas this week. “This year you will see more and more focus on AI and autonomous,” said PwC’s U.S. automotive industry leader C.J. Finn, as automakers dial back EV launches amid policy shifts and cost concerns. Reuters cited Tesla’s launch of a small robotaxi service with safety monitors in Austin last year, alongside faster expansion by Alphabet’s Waymo, as reigniting interest in the sector. 3
Tesla had climbed 3.1% on Monday, snapping a seven-session losing streak, as Wall Street rallied. The next test for rate-sensitive growth stocks comes with Friday’s U.S. nonfarm payrolls report — the government’s monthly jobs report — while markets were pricing in about 60 basis points (0.60 percentage point) of Federal Reserve easing in 2026, Reuters reported. 4
But monthly registration data can swing with delivery timing and fleet orders, making the signal noisy. A prolonged slide in Europe would likely rekindle pressure for incentives and price cuts, risking a fresh squeeze on margins.
