Tesla's Share Of European EV Market Reduced To 3.5%

Tesla Inc. TSLA has seen a further year-over-year loss in its share of the European electric-vehicle market as of January, Marketwatch reported, citing new research by automotive analyst Matthias Schmidt.

What Happened: The U.S. electric vehicle maker saw 1,619 registrations of its battery-electric vehicles in 18 key European markets in January this year, representing a market share of 3.5%, according to the report. This marks a decline from Tesla’s 1,977 registrations in January 2020 and a market share of more than 5%.

Tesla’s 12-mont rollout volumes also fell behind South Korean automakers Hyundai Motor Co. HYMTF and its affiliate Kia, which have now emerged as the third most popular EV group in Europe.

Volkswagen AG VLKAF remains the most popular battery-electric vehicle group in Europe, with 22 percent of the market share as 10,193 of its vehicles were registered.

Why It Matters: The European market continues to see strong adoption of battery-powered electric vehicles and plug-in hybrid electric vehicles. European automakers are also increasingly shifting to the production of electric vehicles.

Tesla had remained at the top of the European EV charts in 2019 by delivering more than 109,000 vehicles and claiming a 31 percent share of the region’s electric vehicle market.

But last year, Tesla fell behind the brands of Volkswagen Group as well as the alliance between Renault SA RNSLY, Nissan Motor Co. NSANY and Mitsubishi Motors Corp. MMTOF. The company’s market share fell sharply to 13 percent.

See Also: Musk Says Tesla FSD Subscriptions To Launch By June But Buying Would Still Be Better

Price Movement: Tesla shares closed 6.3% higher on Monday at $718.43.