Tesla Loses Ground in US EV Market While Rivals Accelerate Ahead in January: Report

Zinger Key Points

Tesla’s U.S. registrations dropped 11% in January, while rivals like Ford and VW saw a 44% surge.
Tesla’s EU registrations halved in January as brand sentiment and political backlash weigh on growth.
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Tesla Inc’s TSLA trend might not be in a good space. The new U.S. registrations for the Elon Musk led electric vehicle maker slipped 11% in January 2025, while rival registrations noted a 44% rise, led by Ford Motor Co F, Chevrolet, and Volkswagen AG VWAGY, Automotive News cited S&P Global Mobility data on Wednesday.

Another report last week from the auto industry body said 7,517 new Tesla cars were registered in the E.U. in January, down from 15,130 in 2024.

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According to the European Automobile Manufacturers Association (ACEA), Tesla’s new car registration in the E.U. fell by over 50% in January despite a rise in overall battery electric vehicle registrations.

According to the Society of Motor Manufacturers and Traders (SMMT) data, Tesla had 1,458 registrations in January in the U.K., down from the 1,581 registered in 2024. BYD Co BYDDY, in comparison, had 1,614 registrations, up by 551%.

Tesla researcher Troy Teslike said the EV company would likely not deliver 500,000 vehicles in a quarter in 2025, citing brand sentiment issues.

On the flip side, Tesla chief Elon Musk has announced that Tesla will double vehicle production in the U.S. within two years.

Recently, President Donald Trump transformed the White House to showcase Tesla vehicles in solidarity with his senior advisor and de facto head of the Department of Government Efficiency (DOGE), Musk and his company. Trump also purchased a Tesla Model S Plaid.

Musk has acknowledged the challenges of running his business while working with DOGE amid a massive decline in Tesla’s stock price.

Tesla has faced protests against the company in the U.S. and Europe, with demonstrators criticizing Musk’s political activities.

According to Statista, the EV market in the U.S. could generate revenue of $104.7 billion in 2025 and grow at an annual rate (CAGR 2025-2029) of 10.53%, resulting in a projected market volume of $156.3 billion by 2029. Tesla’s upcoming earnings in April might be a good proxy for the recent reports on declining trends.

Price Action: TSLA stock is up 7.60% at $248.11 at last check Wednesday.

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