Global consumer interest in Tesla is waning, with the electric vehicle maker losing ground to domestic competitors in China and facing challenges in both the U.S. and Europe, according to a new UBS survey.
In China, Tesla’s standing as a top EV brand choice fell to 14% from 18% a year earlier, now ranking behind BYD and Xiaomi, UBS analysts wrote in a research note. The data points to a shift in Chinese consumer preference toward domestic brands, though Tesla continues to outperform other foreign automakers.
Tesla’s image as a technological leader has weakened amid intensifying competition in China, the company’s second-largest market. According to the China Passenger Car Association (CPCA), Tesla’s retail sales in the country totaled 134,607 units in the first quarter, up 1.65% year-on-year but down 31.64% from the previous quarter. Between January and April, Tesla’s retail sales declined 0.31% year-on-year to 163,338 units.
The UBS survey also pointed to challenges in Tesla’s U.S. and European markets. In the U.S., Tesla faces signs of market saturation with an estimated 48% share of the battery electric vehicle (BEV) segment. A limited vehicle lineup and affordability concerns are weighing on consumer interest. In Europe, brand appeal may have been affected by CEO Elon Musk’s political visibility, the note said.
Globally, the share of consumers considering a Tesla dropped to 36% from 39% last year. As the top BEV choice, Tesla’s global share fell to 18%, down from 22% a year ago. In the U.S., that figure dropped from 38% to 29%, while in Europe it declined from 20% to 15%, with brands such as Audi and BMW surpassing Tesla in consumer consideration.
UBS maintained a “Sell” rating on Tesla stock and set a 12-month price target of $190, implying a 47.6% downside from Tuesday’s closing price of $362.89.