Story Stocks^®

Tesla’s (TSLA) latest registration data from Europe underscored another tough month, as sales continued to slump across most major markets. According to Reuters, registrations fell sharply in France (-58% to 1,593), Sweden (-59% to 1,466), and Denmark (-49%), reflecting intensifying competition from local EV makers, fewer pricing actions from TSLA this year, and a cooling broader EV demand environment across the continent.

• In stark contrast, Norway was once again a bright spot, with registrations nearly tripling to 6,215 vehicles - already surpassing the country’s full-year record - helped by Norway’s generous EV incentives, extremely high EV adoption rates, and TSLA’s strong brand position in a market that prioritizes charging infrastructure and total cost of ownership.
• TSLA’s struggles in Europe add to an already challenging backdrop in China, where October sales tumbled nearly 36% to just over 26,000 units, marking the company’s weakest monthly tally in three years.
• TSLA’s fundamentals have been pressured by slumping ASPs driven by price cuts, margin compression tied to those lower prices and elevated manufacturing costs, and rising investments in AI, autonomy, new vehicle platforms, and factory retooling.
• The company remains in between growth cycles, with its next major inflection tied not to traditional vehicle launches but to the long-term rollout of autonomous driving/Robotaxi services and humanoid robotics - initiatives that require heavy upfront spending and offer little near-term revenue visibility.

Briefing.com Analyst Insight:

TSLA’s latest European and China figures reinforce the reality that its core EV business has entered a slower growth phase, weighed down by intensifying global competition and a more value-oriented consumer. While Norway shows that TSLA can still thrive in highly EV-mature markets, the broader demand softness highlights how reliant the company has become on promotions, pricing adjustments, and geographic pockets of strength. TSLA’s long-term narrative increasingly hinges on autonomy and robots, but those remain multi-year bets with uncertain regulatory and commercial timelines. Until clearer evidence emerges that these initiatives can scale, the stock’s premium valuation may be hard to defend given tightening margins, rising costs, and inconsistent regional demand.