New York, February 2, 2026, 09:32 (EST) — Regular session
- Tesla shares dipped in early trading after new European registration figures suggested a shaky start to the year.
- A sharp drop in precious metals sparked a wider risk-off mood, hitting megacap tech stocks hard.
- Investors will eye U.S. labor data later this week alongside fresh clues on Tesla demand in Europe.
Tesla shares dropped roughly 2% in early Monday trading, retreating from Friday’s close amid signals of sluggish momentum in some European markets. The stock hovered near $421, down from about $430 at the previous close. (Public)
The slide followed weakness across megacap tech shares, as a sharp selloff in gold and silver rattled equities after CME Group hiked margin requirements. Attention also shifted to interest-rate risk after Donald Trump picked Kevin Warsh to succeed Jerome Powell. “There’s a ripple effect in stocks,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. (Reuters)
New Tesla car registrations in Europe, often used as a sales gauge, remained sluggish in January, traditionally one of the slowest months. Registrations climbed 26% in Sweden, reaching 512 vehicles, and edged up 3% in Denmark to 458, official figures showed. But Norway saw a steep 88% plunge to just 83 cars, while France dropped 42% to 661. (Reuters)
Tesla has been pushing lower-priced versions of the Model Y and Model 3 to boost demand, but competition is heating up, especially from China’s BYD. This comes even as battery-electric vehicle sales in the region have grown overall. The company has also found it tough to win back market share after CEO Elon Musk’s support for far-right European politicians, according to the report. (Reuters)
The European figures come just days after Tesla outlined its ambitions beyond vehicle manufacturing, revealing a $2 billion investment in xAI and intentions to launch production of its Cybercab robotaxi in 2026. The company also signaled a significant increase in capital expenditure. (Reuters)
Investors are also watching rumors about possible mergers among Musk’s companies, including SpaceX. But a Reuters analysis flagged that folding private assets into a public firm can stir up valuation and governance issues. “If the valuations are extremely high it will be viewed as dilutive to Tesla shareholders,” said John Streur, senior managing partner at Boston Common Asset Management. (Investing.com South Africa)
Monthly registrations often fluctuate due to timing, incentives, and shipping patterns, with January figures based on a small base across much of Europe. Any rebound later in the quarter could weaken the message from these early numbers.
Tesla faces immediate pressure if a weak Europe session triggers deeper discounting, putting margins under strain right when investors are eyeing major tech and EV spending closely. A wider market downturn would only add to the pain.
Traders are zeroing in on U.S. jobs data through the week, with Friday’s payrolls report the main event. At the same time, the next batch of big-tech earnings will offer fresh signals on risk appetite. Tesla supporters and skeptics alike will be scrutinizing European demand figures and any new developments on the company’s autonomy timeline for hints on what’s next.
