Investing.com -- Tesla had a rough start to the year, losing market share across key regions in January, according to UBS.
The bank said in a note Friday that the automaker’s European sales plunged 51% year-over-year, making it the “biggest loser” in the region. In China, Tesla’s retail sales also dropped 15% year-over-year, while domestic brands continued to gain ground, highlighted UBS.
The bank’s analysts described January as a “very poor month for Tesla (NASDAQ:TSLA),” noting that global electric vehicle (EV) demand remains strong, but competition is intensifying.
In Europe, EV sales grew 33% year-over-year as automakers pushed to meet CO2 compliance targets. Meanwhile, UBS stated that Chinese new energy vehicle (NEV) brands expanded their market share, with Xpeng (NYSE:XPEV) surging 251% year-over-year due to new product launches.
The U.S. market was more stable, with EV sales increasing 25% compared to last year. However, overall U.S. auto inventories remained elevated in terms of days’ supply, despite sequential declines, according to UBS.
Tesla’s performance in the region was not explicitly detailed in the UBS report, but they noted that other major automakers showed mixed results, with GM up 17% while Ford (NYSE:F) and Stellantis (NYSE:STLA) saw declines.
The report also highlighted the ongoing debate over U.S. auto tariffs, which could impact global automakers.
While tariffs on Mexico- and Canada-made vehicles were temporarily put on hold, UBS warned that a potential U.S. tariff on European vehicles could significantly affect German automakers.