New York, February 4, 2026, 09:38 (ET) — Regular session
- Tesla shares held steady early Wednesday amid mixed signals from new data out of China and Europe.
- Investors are watching January sales closely, looking to see if demand is holding up without resorting to deeper discounts.
- Attention is shifting toward possible regulatory actions concerning Tesla’s driver-supervised Full Self-Driving, as well as the upcoming end-February deadline for China incentives.
Tesla shares barely moved in early U.S. trading Wednesday, with a rise in shipments from China offset by a sharp January slump in UK sales and mixed results across continental Europe. The stock edged up roughly 0.1% to $422.
Investors have relied heavily on monthly sales figures to gauge demand in crucial markets, despite the data often being volatile. Tesla’s valuation is tight, offering little margin for an extended slump in deliveries—especially if incentives expand.
Traders are grappling with what’s seasonal versus what’s structural. Competition is heating up in Europe and China, and shifts in pricing and financing could quickly upend the landscape.
Deliveries of Model 3 and Model Y vehicles from Tesla’s Shanghai factory—including exports—jumped 9.3% in January compared to a year earlier, according to data from the China Passenger Car Association. China’s EV sales and exports nudged up about 1% year on year in January, following a combined 25% increase in 2025. Meanwhile, BYD, Tesla’s top Chinese rival, saw a 30% plunge in global sales last month. Tesla is also aiming to boost software revenue; CEO Elon Musk said Europe and China might greenlight its driver-supervised “Full Self-Driving” system as soon as this month. Reuters
In China, Tesla’s seven-year financing offer is forcing competitors to extend their repayment schedules, Reuters found. At least 10 brands have introduced longer loan terms, aiming to match Tesla’s push. The automaker’s incentives on Model 3 and Model Y purchases run through February and include up to five-year plans with zero down payment. China’s financial regulator sets a seven-year cap on consumer loans, yet Dongfeng Nissan is promoting an eight-year plan with daily payments as low as 27 yuan ($3.89). The company has yet to respond to Reuters’ request for comment on how this fits within the rules.
In January, Tesla’s UK battery-electric vehicle sales tumbled over 57% year-on-year to 647 units, according to research firm New AutoMotive. The broader UK battery-electric market also dipped 6.4%. BYD, meanwhile, posted a 21% rise with 1,326 EVs sold, and Ford topped the segment with 2,271 units. Overall UK car registrations across all fuel types dropped 4.6% to 133,571. Tanya Sinclair, CEO of Electric Vehicles UK, said, “British consumers are still moving towards cars with plugs, and away from those without,” but cautioned that January figures can fluctuate following a strong December. Reuters
In January, Tesla registrations—a sales proxy—climbed in Spain, Sweden, Denmark, and Italy but dropped sharply in Norway, France, Belgium, Portugal, and the Netherlands, official figures reveal. Spain saw 456 registrations, a 70% jump, while Italy’s rose 75% to 713. Meanwhile, Norway’s numbers plunged 88% to 83, and France’s fell 42% to 661. Tesla’s European market shrank 27% in 2025. Reuters reports the company has struggled to regain ground despite launching cheaper Model Y and Model 3 versions, as BYD ramps up competition and Musk’s political stances spark backlash in some countries.
Tesla held firm while broader U.S. stocks showed signs of weakness early Wednesday. The Nasdaq-focused QQQ slipped around 1.5%, and the S&P 500 proxy SPY dropped close to 0.9%.
January snapshots, however, are a mixed bag. China’s numbers mix domestic demand with exports, while Europe’s January usually sees low trading volumes — a weak report can seem worse than reality, and a strong one might not hold up.
Investors are zeroing in on two key factors: if Tesla extends its China financing incentives past Feb. 28, and whether regulators in Europe and China give the green light to Tesla’s driver-supervised Full Self-Driving software later this month.
