New York, Feb 5, 2026, 16:03 (EST) — After-hours
Tesla shares slipped 2.7% to $394.85 in late Thursday trading after new European sales figures showed Volkswagen’s brand surpassing the U.S. automaker in 2025 battery-electric vehicle sales. Volkswagen sold 274,278 BEVs in Europe last year, topping Tesla’s 236,357, according to JATO Dynamics. (Reuters)
These figures carry weight since Tesla’s stock hinges on its growth narrative. Even a hint of slowing demand—or competitors closing the gap sooner than anticipated—can hit sentiment hard, often well before the quarterly delivery numbers arrive.
Investors remain wary of high-multiple “AI-adjacent” stocks, a category that often includes Tesla. Thursday’s drop coincided with a wider pullback in tech and consumer discretionary sectors, offering little buffer against individual missteps.
January sales of Tesla vehicles in Britain dropped sharply, down over 57% year-on-year to just 647 units, according to New Automotive data. Meanwhile, Chinese competitor BYD pushed ahead, selling 1,326 battery electric vehicles (BEVs), a rise of nearly 21%. Ford topped the UK BEV market with 2,271 units. Overall, UK car registrations slipped 4.6% to 133,571. “British consumers are still moving towards cars with plugs, and away from those without,” said Tanya Sinclair, CEO of Electric Vehicles UK. (Reuters)
China data showed a mixed picture. Deliveries of Model 3 and Model Y vehicles from Tesla’s Shanghai plant, including exports, jumped 9.3% in January compared to a year ago, marking the third month of gains, according to the China Passenger Car Association. Yet, Reuters reported Tesla’s China-made EV sales dropped 7.1% in 2025, while its share of China’s EV market slipped to 8% from 10% in 2024 amid rising competition and a slowing market. (Reuters)
Wall Street looked shaky. The S&P 500 dropped 0.96%, the Nasdaq slipped 1.12%, and the Dow lost 0.95% earlier after investors weighed fresh AI spending announcements from Big Tech. Skepticism lingered over how soon those outlays will pay off. “We’re seeing this volatility about whether this investment will translate, ultimately, into results,” said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management. (Reuters)
Economic data fueled caution. Weekly jobless claims climbed by 22,000, hitting 231,000. At the same time, job openings dropped to 6.542 million in December, Reuters reported. Still, economists noted these figures don’t signal a major shift in the labor market. (Reuters)
Tesla ran into legal trouble as well. A California judge indicated that Tesla and CEO Elon Musk probably won’t get a copyright lawsuit dismissed. The case involves alleged use of “Blade Runner 2049” imagery in promoting Tesla’s autonomous “cybercab,” according to a filing. (Reuters)
The risk for bulls is clear: should softer sales in Europe and the UK continue, Tesla might need to ramp up incentives and financing to keep volumes up, putting pressure on margins. Any hold-up or resistance on driver-assistance approvals overseas would also weaken the software-driven growth story that investors are counting on to carry more weight.
Traders are now gearing up for a wave of U.S. economic data, delayed by a short government shutdown that disrupted the schedule. The Bureau of Labor Statistics confirmed the January jobs report will land Wednesday, while January’s CPI figures are expected next Friday. These releases have the power to shift rate expectations—and in turn, impact high-growth stocks like Tesla. (Reuters)
