Alert: EVs suffer global drop in January 2026, Tesla loses momentum

Global EV sales drop 3% in Jan/2026; China and North America suffer sharp declines as Tesla struggles to regain pace.

Electric vehicle sales fell 3% in January 2026 compared to the same month in 2025, signaling that the sector is entering a global 'deep freeze'. China, the largest EV market, recorded a 20% drop, while North America saw a contraction of 33%. Europe also remains under pressure, with significant declines in various markets.

Among the players, Tesla continues to face difficulties in maintaining growth momentum, especially in China, where it sold fewer than 20,000 vehicles in January 2026 — the lowest number since the end of 2022. Last year, BYD reassumed the title of the largest seller of battery-powered vehicles.

Performance by region

• Global: -3% in January 2026 compared to the previous year.
• North America: 33% drop in January 2026.
• China: 20% drop in January 2026.
• Europe: signs of weakness with a sharp drop in France and only 82 cars sold in Norway.

Regulatory context and market impact

In addition to the demand retreat, public policy changes are weighing on sales. In the US, the end of the tax credit of up to US$ 7,500 for EVs, implemented in September 2025, contributed to the short-term worsening. In China, the government ended a tax exemption for EVs and adjusted the vehicle scrappage program, reducing incentives for purchasing these models.

What comes next

Tesla needs to adjust its strategy and lineup to face market conditions in key countries. Although there is an expectation of long-term focus on autonomous vehicles and robotaxis, in the short term the company will need to regain competitiveness in the traditional EV segment.

The state of the sector

The global EV market faces significant headwinds, with policy changes and increased competition from local brands in China and Europe, highlighting the volatility and accelerated transformation of the sector.

What they are saying

Tesla executives highlight the consistency of their announced strategies, even in the face of challenging results, while the market watches how the company will adjust its long-term focus.

Participate: with all these changes, do you believe Tesla can regain leadership in China or Europe? Leave your opinion in the comments below.