Volkswagen Tops Electric Car Sales in Europe, Surpassing Tesla in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Should l Buy TSLA?
Source: seekingalpha
- Significant Sales Growth: According to JATO Dynamics, Volkswagen's electric vehicle sales surged by 56% in 2025, making it the top seller in Europe and breaking Tesla's four-year streak, demonstrating Volkswagen's strong competitiveness in the EV sector.
- Market Share Shift: Tesla's EV sales fell by 27% during the same year, indicating intensified market competition; Volkswagen's success not only impacts Tesla's market share but could also reshape the future landscape of the electric vehicle market.
- Outstanding Model Performance: Volkswagen's ID.4, ID.3, and ID.7 emerged as the best-selling electric models in Europe, with Škoda Enyaq and Cupra Born as key MEB platform companions, further strengthening Volkswagen's product lineup and expected to drive future sales growth.
- Overall Industry Growth: In 2025, overall EV sales in Europe grew by 29%, significantly outpacing the growth of the traditional automotive industry, reflecting a sustained increase in consumer demand for electric vehicles and driving the transformation of the entire sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 406.010
Low
25.28
Averages
401.93
High
600.00
Current: 406.010
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nio Issues Profit Alert, Stock Rises
- Profit Alert Issued: Nio expects to report an adjusted operating profit of between $100 million and $172 million for Q4 2025, marking its first-ever entry into profitability, which boosts investor confidence and drives a 5.86% increase in stock price to $4.7.
- Strong Sales Growth: The company achieved record monthly EV deliveries in October and December during Q4, indicating sustained market demand that supports the profit alert announcement.
- Surge in Trading Volume: Today's trading volume reached 120.4 million shares, approximately 148% above the three-month average of 48.5 million shares, reflecting heightened investor interest in Nio's future profitability potential.
- Outstanding Market Performance: Amid a broader market decline, Nio's relative performance stands out, particularly as competitors like Tesla and Rivian see their stock prices drop, showcasing Nio's competitive strength in the EV market.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Tesla Faces Competition and Stock Price Challenges
- Need for Brand Awareness: Tesla must enhance market recognition through brand awareness campaigns and the launch of a conventional pickup truck to counter competitors' rapid expansion in the autonomous driving sector, which will directly impact its stock performance.
- Intensifying Competition: With competitors like Waymo scaling their robotaxi operations, Tesla's market share in autonomous driving is under pressure, particularly in the global pickup market where it holds only an 8% share; achieving a 10% share could potentially yield an additional $1.20 per share in earnings.
- Safety Monitor Adjustments: Tesla plans to remove all safety monitors from its robotaxis, despite management's assertion that only one critical disengagement per year is needed; this cautious approach is essential to ensure the safety and reliability of the service as it scales.
- Market Sentiment Dismal: Although Tesla's stock has gained over 4% in the past 12 months, retail sentiment on Stocktwits remains in the 'extremely bearish' territory, indicating investor concerns about future performance.
See More
The Magnificent Seven Stocks Show Exceptional Performance
- Significant Investment Returns: From 2016 to the end of 2025, the Magnificent Seven stocks achieved an impressive return of 875%, significantly outperforming the S&P 500's 235%, highlighting their strong market performance and investment appeal.
- Microsoft's Strong Earnings: In Q2 of fiscal 2026, Microsoft reported revenues of $81.3 billion, a 17% increase year-over-year, with net income at $38.5 billion and earnings per share of $5.16, reflecting its sustained growth potential in cloud computing and software.
- Tesla Faces Challenges: Tesla's vehicle deliveries fell to 418,227 in Q4 2025, down from 495,570 in Q4 2024, primarily due to increased competition and the expiration of the EV tax credit, indicating pressures in the electric vehicle market.
- Future Strategic Shift: Tesla plans to convert part of its Fremont, California plant to produce Optimus robots, aiming for an annual output of 1 million units, showcasing its innovative potential and intent to expand beyond electric vehicles.
See More
US Stocks Plunge Sharply, Led by Technology Sector Declines
- Technology Sector Decline: Qualcomm (QCOM) forecasts Q2 revenue between $10.2 billion and $11.0 billion, below the consensus of $11.18 billion, leading to an over 8% drop in its stock and exacerbating the overall decline in the Nasdaq 100 index, heightening market panic.
- Weak Labor Market Signals: Challenger's report shows January job cuts surged 117.8% year-on-year to 108,435, marking the highest level since 2009, indicating fragility in the US labor market and increasing investor concerns about economic outlook.
- Bitcoin Price Crash: Bitcoin (^BTCUSD) is down more than 7% today, hitting a 1.25-year low and falling about 45% from its October record high, reflecting negative sentiment in the cryptocurrency market and a trend of capital outflows.
- Impact of Earnings Season: Despite 150 S&P 500 companies set to report earnings this week and 81% of the 237 companies that have reported exceeding expectations, market concerns over future economic data continue to suppress stock performance, with S&P earnings growth expected to reach 8.4% in Q4.
See More
Tesla's Robotaxi Prospects Look Promising
- Optimistic Revenue Forecast: Analysts project that Tesla's robotaxi revenue could reach $250 billion by 2035, assuming a 30% penetration of autonomous vehicles and a 50% market share, supporting an equity value of $2.75 trillion, which translates to about $900 billion when discounted back, equating to $250 per share.
- Market Expansion Plans: Tesla aims to launch robotaxis in seven new markets in the first half of this year, although this initiative is expected to incur losses of up to $500 million as the fleet expands from 250 to 7,200 vehicles, adversely impacting short-term profitability.
- High Cost Challenges: While maintaining an optimistic outlook on robotaxis, analysts highlight that Tesla will face significant costs in building its robotaxi fleet and the Optimus humanoid robots, which could negatively affect the company's earnings in the near term.
- Market Competition Risks: Tesla's first-mover advantage in autonomous driving may allow it to quickly capture market share, but it also faces multiple challenges, including competition, fleet expansion, transitioning to fully autonomous driving, and regulatory hurdles, leading analysts to express caution.
See More
Nio Issues Profit Alert, Stock Rises
- Profit Alert Issued: Nio expects to report an adjusted operating profit of between $100 million and $172 million for Q4 2025, marking its first-ever entry into profitability, which boosts investor confidence and drives a 5.86% increase in stock price to $4.7.
- Strong Sales Growth: The company achieved record monthly EV deliveries in October and December during Q4, indicating sustained market demand that supports the profit alert announcement.
- Surge in Trading Volume: Today's trading volume reached 120.4 million shares, approximately 148% above the three-month average of 48.5 million shares, reflecting heightened investor interest in Nio's future profitability potential.
- Outstanding Market Performance: Amid a broader market decline, Nio's relative performance stands out, particularly as competitors like Tesla and Rivian see their stock prices drop, showcasing Nio's competitive strength in the EV market.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Tesla Faces Competition and Stock Price Challenges
- Need for Brand Awareness: Tesla must enhance market recognition through brand awareness campaigns and the launch of a conventional pickup truck to counter competitors' rapid expansion in the autonomous driving sector, which will directly impact its stock performance.
- Intensifying Competition: With competitors like Waymo scaling their robotaxi operations, Tesla's market share in autonomous driving is under pressure, particularly in the global pickup market where it holds only an 8% share; achieving a 10% share could potentially yield an additional $1.20 per share in earnings.
- Safety Monitor Adjustments: Tesla plans to remove all safety monitors from its robotaxis, despite management's assertion that only one critical disengagement per year is needed; this cautious approach is essential to ensure the safety and reliability of the service as it scales.
- Market Sentiment Dismal: Although Tesla's stock has gained over 4% in the past 12 months, retail sentiment on Stocktwits remains in the 'extremely bearish' territory, indicating investor concerns about future performance.
See More
The Magnificent Seven Stocks Show Exceptional Performance
- Significant Investment Returns: From 2016 to the end of 2025, the Magnificent Seven stocks achieved an impressive return of 875%, significantly outperforming the S&P 500's 235%, highlighting their strong market performance and investment appeal.
- Microsoft's Strong Earnings: In Q2 of fiscal 2026, Microsoft reported revenues of $81.3 billion, a 17% increase year-over-year, with net income at $38.5 billion and earnings per share of $5.16, reflecting its sustained growth potential in cloud computing and software.
- Tesla Faces Challenges: Tesla's vehicle deliveries fell to 418,227 in Q4 2025, down from 495,570 in Q4 2024, primarily due to increased competition and the expiration of the EV tax credit, indicating pressures in the electric vehicle market.
- Future Strategic Shift: Tesla plans to convert part of its Fremont, California plant to produce Optimus robots, aiming for an annual output of 1 million units, showcasing its innovative potential and intent to expand beyond electric vehicles.
See More
US Stocks Plunge Sharply, Led by Technology Sector Declines
- Technology Sector Decline: Qualcomm (QCOM) forecasts Q2 revenue between $10.2 billion and $11.0 billion, below the consensus of $11.18 billion, leading to an over 8% drop in its stock and exacerbating the overall decline in the Nasdaq 100 index, heightening market panic.
- Weak Labor Market Signals: Challenger's report shows January job cuts surged 117.8% year-on-year to 108,435, marking the highest level since 2009, indicating fragility in the US labor market and increasing investor concerns about economic outlook.
- Bitcoin Price Crash: Bitcoin (^BTCUSD) is down more than 7% today, hitting a 1.25-year low and falling about 45% from its October record high, reflecting negative sentiment in the cryptocurrency market and a trend of capital outflows.
- Impact of Earnings Season: Despite 150 S&P 500 companies set to report earnings this week and 81% of the 237 companies that have reported exceeding expectations, market concerns over future economic data continue to suppress stock performance, with S&P earnings growth expected to reach 8.4% in Q4.
See More
Tesla's Robotaxi Prospects Look Promising
- Optimistic Revenue Forecast: Analysts project that Tesla's robotaxi revenue could reach $250 billion by 2035, assuming a 30% penetration of autonomous vehicles and a 50% market share, supporting an equity value of $2.75 trillion, which translates to about $900 billion when discounted back, equating to $250 per share.
- Market Expansion Plans: Tesla aims to launch robotaxis in seven new markets in the first half of this year, although this initiative is expected to incur losses of up to $500 million as the fleet expands from 250 to 7,200 vehicles, adversely impacting short-term profitability.
- High Cost Challenges: While maintaining an optimistic outlook on robotaxis, analysts highlight that Tesla will face significant costs in building its robotaxi fleet and the Optimus humanoid robots, which could negatively affect the company's earnings in the near term.
- Market Competition Risks: Tesla's first-mover advantage in autonomous driving may allow it to quickly capture market share, but it also faces multiple challenges, including competition, fleet expansion, transitioning to fully autonomous driving, and regulatory hurdles, leading analysts to express caution.
See More
