Tesla's European car registrations plummeted 17% year-on-year in January, with the U.S. electric-vehicle maker selling just 8,075 cars in the EU during the month, down from 9,733 a year earlier. This decline pushed Tesla's market share in the region down to 0.8% from 1.0%, according to the European Automobile Manufacturers' Association.

The drop contrasts sharply with broader EV market trends in Europe, where battery-electric vehicles expanded their market share to 19.3% from 14.9% a year earlier. Hybrid-electric cars remained the most popular powertrain, capturing 38.6% of registrations, while petrol and diesel models continued to lose ground despite overall EU new-car registrations falling 3.9%.

Tesla's declining performance highlights mounting pressure from established European brands in key markets like France and Germany. The company once dominated the EV segment but now faces stiff competition as traditional automakers accelerate their electric vehicle strategies, potentially forcing Tesla to reassess its European market approach.