Tesla Shares (TSLA) Drop as November Sales Decline by More Than 50% in Major European Markets
Sales Decline in Europe: Tesla's shares fell 1.2% as the company faced significant sales declines in several European countries, with registrations dropping 58% in France, 49% in Denmark, and 59% in Sweden, attributed to CEO Elon Musk's controversial comments and rising competition.
Challenges and Competition: Tesla struggles with an aging model lineup, production delays, and supply chain issues, while facing intensified competition from local brands and Chinese manufacturers, notably BYD, which has captured market share.
Mixed Performance Across Markets: Despite the overall decline, Norway showed a positive trend with a 34.6% year-to-date sales growth, indicating that Tesla still has strong demand for its Model Y SUV in certain markets.
Analyst Outlook: Analysts have a Hold consensus rating on Tesla's stock, with an average price target suggesting nearly 11% downside potential, reflecting uncertainty about the company's long-term outlook amidst changing market dynamics.
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- Merger Valuation Surge: Musk's merger of SpaceX with xAI creates a new entity valued at $1.25 trillion, boosting his net worth to approximately $845 billion, reflecting his ambitions in aerospace and AI sectors.
- Wealth Shift: Post-merger, Musk's ownership in the new entity is estimated at 43%, valued at over $530 billion, indicating a shift in his wealth focus from Tesla to SpaceX, which now constitutes nearly two-thirds of his wealth.
- Market Potential: The merger is seen as a strategic move to access larger capital markets, particularly as xAI's AI model development requires significant funding, potentially opening up greater business opportunities for Musk.
- Future Challenges: While Musk aims to become the world's first trillionaire, SpaceX needs to reach a valuation of approximately $1.6 trillion, facing regulatory scrutiny and ongoing investigations into xAI, which could impact his financial strategy.
- FSD Transfer Program Overview: Tesla has launched a limited-time FSD transfer program allowing customers to order a new vehicle and transfer the Full Self-Driving feature from their existing vehicle by March 31, 2026, aimed at enhancing customer experience and boosting new vehicle sales.
- Eligibility Requirements: Customers must be the legal owners of the current FSD vehicle, with both vehicles under the same Tesla account, ensuring a smooth transfer process that enhances customer loyalty to the Tesla brand.
- Transfer Conditions: Vehicles eligible for transfer must not be under lease, used for commercial purposes, or have unresolved financial issues, ensuring compliance and safety during the transfer process while minimizing potential legal risks.
- Policy Update Context: This program follows Tesla's announcement that the free FSD transfer service will end in March, demonstrating the company's flexibility in adjusting policies to meet market demands and customer feedback.
- New Model Testing: Rivian's upcoming R2 crossover SUV was spotted testing in Fairbanks, Alaska, indicating the company's commitment to assessing EV performance in cold weather, which is expected to enhance its market competitiveness.
- Battery Performance Evaluation: The testing aims to evaluate the R2's performance in sub-zero conditions, particularly the battery's behavior in low temperatures, and successfully passing this test will boost consumer confidence in Rivian's EVs.
- Autonomous Driving Technology: Rivian's self-driving technology, which incorporates a LiDAR and camera-based approach, will be featured in the R2 models, potentially driving sales growth, especially with the upcoming Autonomy+ subscription service launching in 2026.
- Stock Performance: RIVN shares surged 7.91% to $14.81 during regular trading on Friday and increased by 1.09% to $14.97 in pre-market trading on Monday, reflecting positive market sentiment towards the new model.
- Production Launch: The first mass-produced bZ4X Robotaxi developed by Pony.ai and Toyota has rolled off the production line, marking the start of scaled production and commercial deployment in China, with plans to produce over 1,000 vehicles by 2026, supporting Pony.ai's goal of expanding its fleet to 3,000.
- Cost Reduction: Pony.ai reported that the bill of materials for its seventh-generation autonomous driving system has decreased by approximately 70% compared to the previous generation, which not only improves deployment economics but also provides stronger financial backing for future commercial operations.
- Feature Enhancements: The new generation of Robotaxis includes features such as Bluetooth-based automatic unlocking, in-cabin voice interaction, online music, and pre-trip climate control, aimed at enhancing passenger experience and reducing motion sickness, thereby increasing market competitiveness.
- Intensifying Market Competition: As competitors like Tesla and Baidu rapidly advance in the Robotaxi sector, Pony.ai's commercial deployment will face greater market pressure, particularly in the fiercely competitive landscape of China's Tier-1 cities.
- Diverse Revenue Sources: Musk indicated that NASA will account for only about 5% of SpaceX's revenue this year, highlighting the company's strong performance in the commercial sector, particularly with the success of Starlink, which is expected to drive future revenue growth.
- Starlink Revenue Surge: According to Payload Space, Starlink's revenue is projected to rise from $1.9 billion in 2022 to $8.2 billion by 2024, showcasing its potential as a cash cow and further solidifying SpaceX's market position.
- Second-Generation System Plans: SpaceX plans to launch its second-generation Starlink cellular system in 2027, aimed at enhancing service capabilities to meet growing user demand and laying the groundwork for the upcoming IPO.
- Optimistic IPO Outlook: SpaceX is targeting a valuation of over $1 trillion during its IPO, which would make it the largest IPO in history, reflecting strong market confidence in its future growth.
- Sodium-Ion Battery Lifespan: BYD's sodium-ion batteries are capable of 10,000 charge cycles, significantly exceeding the typical range of 1,500 to 3,000 cycles, which enhances the overall lifespan and market competitiveness of its electric vehicles.
- Solid-State Battery Production Plans: BYD aims to commence small-scale production of its sulfide solid-state batteries by 2027, promising longer lifespans and faster charging times, which could further advance electric vehicle technology and market acceptance.
- Sales Decline Impacting Stock: BYD's sales in the Chinese market fell by 30% in January, with only 210,051 units sold, marking a 50% drop from December 2025, potentially exerting negative pressure on its stock price and reflecting market demand fluctuations.
- Competitive Dynamics with Tesla: BYD's technological breakthroughs may intensify competition with Tesla, which is enhancing battery energy density through dry electrode processes, indicating a fierce competitive landscape in the battery technology sector.











