New York, Feb 5, 2026, 09:34 EST — Regular session underway.
- Tesla shares dropped 3.8% in early trading, slipping to roughly $406.
- New data from Europe reveals Volkswagen surpassed Tesla in battery-electric vehicle sales in 2025.
- Traders are digesting tepid UK sales in January, conflicting demand cues out of China, and renewed U.S. regulatory focus on self-driving technology.
Tesla shares dropped 3.8% to $406.01 in early New York trading Thursday, slipping as low as $394.60 amid a selloff in riskier parts of the market right at the open.
The drop coincides with a broader tech selloff, as investors grow wary of soaring “capex” — capital expenditures — linked to the AI rollout. “This shifts the mood from unchecked optimism to a focus on profitability, tighter funding controls, and more measured positioning,” said Russell Shor, senior market analyst at Tradu. Reuters
Tesla faces tough timing. New data from Europe, the UK, and China has revived old doubts — demand, competition, and the price investors should assign to its autonomy ambitions.
Volkswagen surpassed Tesla in fully electric vehicle sales across Europe in 2025, according to data from JATO Dynamics released Thursday. The firm reported Volkswagen’s battery-electric vehicle (BEV) sales hit 274,278 units, compared with Tesla’s 236,357. Tesla’s registrations dropped by 27% year-on-year. Reuters
In the UK, Tesla’s January sales tumbled over 57% year-on-year to just 647 vehicles, according to New Automotive. Meanwhile, China’s BYD recorded 1,326 battery-EV sales, marking a nearly 21% rise. “British consumers are still moving towards cars with plugs, and away from those without,” said Tanya Sinclair, CEO of Electric Vehicles UK. Reuters
China showed some signs of stability, at least on the surface. Tesla’s Shanghai plant pushed out 9.3% more Model 3 and Model Y vehicles in January compared to last year, including exports, according to CPCA data—its third straight monthly increase. Yet, Tesla’s China-made EV sales dropped 7.1% for the whole of 2025. Reuters also noted Tesla’s share of China’s EV market fell to 8% from 10% in 2024. Reuters
In Washington this week, Tesla and Waymo, owned by Alphabet, pushed Congress to act on stalled legislation that would simplify deploying autonomous vehicles—cars capable of driving without human control. Tesla’s vehicle engineering VP, Lars Moravy, told lawmakers in written testimony that Congress “must modernize regulations that inhibit industry’s ability to innovate.” Reuters
This policy angle is crucial for Tesla as investors now see the stock less as a traditional carmaker wrestling with price wars and model refreshes, and more as a bet on robotaxis — driverless ride-hailing — plus the software income that comes with it.
Headline risk remains. A California judge indicated Tesla and CEO Elon Musk probably won’t escape a copyright lawsuit alleging unauthorized use of “Blade Runner 2049” imagery in marketing Tesla’s autonomous cybercab, Reuters reported. Reuters
Registration numbers can shift sharply month to month, and sentiment around EVs can pivot fast—especially as broader tech reacts to macro worries. On the other hand, a steep selloff could accelerate if investors grow skeptical about the long-term prospects for autonomy once more.
Traders will be monitoring if the broader tech sell-off continues through Thursday’s session. Amazon is set to release earnings after U.S. markets close, while the postponed U.S. non-farm payrolls report is now slated for Feb. 11. Reuters
