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European EV market expected to slow as buyers await affordable models
Several parties are echoing concerns about the European electric vehicle (EV) market as some buyers await new, more affordable models that are just a few years out — and as significant economic uncertainty remains.
Sales of battery-electric vehicles (BEVs) jumped 47 percent in Europe throughout the first nine months of this year, according to Reuters. However, automakers including Mercedes-Benz, Volkswagen and Tesla have aired concerns about high interest rates putting off consumers and slowing EV growth.
According to AutoTrader, EVs in Britain are still roughly 33 percent more costly than their fossil fuel alternatives. Last week, Tesla announced plans to produce its next model, a €25,000/$25,000 EV, at its Gigafactory outside of Berlin, Germany. With the long-anticipated “affordable EV” on its way, some customers may be inclined to wait to buy, along with holding out for what they expect to be better products.
Volkswagen’s EV orders, as one example, were just half of what they were in 2022 during the same nine-month period. On Thursday, Volkswagen announced hopes to build a sub-$35,000 EV in the U.S. within the next three to four years.
Like many automakers, Tesla reported a slight delivery miss in Q3 compared to analyst expectations. However, the company had warned about sales slowing during the third quarter in its Q2 earnings call, and the company has still maintained its lofty delivery goal for Q4, which seems like a good sign.
Even beyond the economic environment and hopes for an affordable EV, data analysis firms and dealerships warn that buyers are holding off until they feel convinced that the technology meets their needs. Thomas Niedermayer, owner of a Bavarian dealership that has been in business for 45 years, notes that the fast-moving technology advancements may have some holding out for more future-proof EV options.
Credit: Reuters
“The main problem is uncertainty,” Niedermayer said. “Many assume that the technology will improve and would rather wait three years for the next model than buy a vehicle now that will quickly lose value.”
Flavia Garcia and Tom Carvell in Edinburgh, Scotland, are in the market for a new vehicle as their 15-year-old Toyota Auris requires replacement. Ahead of gas car sales bans, the couple says they would consider purchasing an EV if it weren’t for fears of charging infrastructure deficiency, battery life and sticker price.
“You want to do the right thing for the environment, but it feels like you’re setting yourself up for a very expensive investment that will make your life that bit more complicated,” Garcia told Reuters. “We’ll probably get a hybrid first.”
EV sales also slowed in September, and Felipe Munoz of JATO Dynamics says the slowdown will remain until affordable EVs are released.
Meanwhile, Tesla’s Model Y was the top-selling vehicle across Europe in September, and the company last month announced it had delivered one million vehicles across the continent. The U.S. EV maker is also rolling out its Model 3 Highland in Europe, set to continue over the next couple of quarters.
Other U.S. automakers, including Ford and General Motors (GM), have recently announced plans to delay the launch of more affordable EVs and to cut back on EV spending as they cite low demand. Over the weekend, it was reported that Ford will no longer build a plant with LG in Turkey, with the slowed pace of EV adoption being the main reason for the canceled plans.
“From a regulatory standpoint, they don’t have to push product out right now – they can afford to focus on profitability,” says Alistair Bedwell, GlobalData’s head of powertrain forecasting. “But they need to have an eye on Tesla and the Chinese brands, because they don’t want to get too far behind.”
Credit: Reuters
According to a poll from the consumer research firm The Langston Co, hopes to buy an EV in Germany have remained steady in the past year, though rising sales suggest that some automakers have finally caught up to supply chain bottlenecks, according to Insights Manager Ben DuCharme.
Philip Nothard, insight director at dealer services firm Cox Automotive, says that concerns around low residual values have also lowered customer sentiment, with many choosing vehicle purchases based on what they think they can resell in a few years.
“We call it the valley of death, which we will be going through in 2024 to 2027: low residual values, high supply, and low demand,” Nothard said.
Tesla Model 3 and Y still dominating U.S. EV market, shows data
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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
The analyst’s updated note
Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker.
“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.
“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote.
Tesla’s busy 2026
The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.
Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year.
Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.
News
Waymo sues Santa Monica over order to halt overnight charging sessions
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Waymo has filed a lawsuit against the City of Santa Monica in Los Angeles County Superior Court, seeking to block an order that requires the company to cease overnight charging at two facilities.
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Nuisance claims
As noted in a report from the Los Angeles Times, Waymo’s two charging sites at Euclid Street and Broadway have operated for about a year, supporting the company’s growing fleet with round-the-clock activity. Unfortunately, this has also resulted in residents in the area reportedly being unable to sleep due to incessant beeping from self-driving taxis that are moving in and out of the charging stations around the clock.
Frustrated residents have protested against the Waymos by blocking the vehicles’ paths, placing cones, and “stacking” cars to create backups. This has also resulted in multiple calls to the police.
Last month, the city issued an order to Waymo and its charging partner, Voltera, to cease overnight operations at the charging locations, stating that the self-driving vehicles’ activities at night were a public nuisance. A December 15 meeting yielded no agreement on mitigations like software rerouting. Waymo proposed changes, but the city reportedly insisted that nothing would satisfy the irate residents.
“We are disappointed that the City has chosen an adversarial path over a collaborative one. The City’s position has been to insist that no actions taken or proposed by Waymo would satisfy the complaining neighbors and therefore must be deemed insufficient,” a Waymo spokesperson stated.
Waymo pushes back
In its legal complaint, Waymo stated that its “activities at the Broadway Facilities do not constitute a public nuisance.” The company also noted that it “faces imminent and irreparable harm to its operations, employees, and customers” from the city’s order. The suit also stated that the city was fully aware that the Voltera charging sites would be operating around the clock to support Waymo’s self-driving taxis.
The company highlighted over one million trips in Santa Monica since launch, with more than 50,000 rides starting or ending there in November alone. Waymo also criticized the city for adopting a contentious strategy against businesses.
“The City of Santa Monica’s recent actions are inconsistent with its stated goal of attracting investment. At a time when the City faces a serious fiscal crisis, officials are choosing to obstruct properly permitted investment rather than fostering a ‘ready for business’ environment,” Waymo stated.
News
Tesla FSD v14.2.2 is getting rave reviews from drivers
So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Tesla Full Self-Driving (Supervised) v14.2.2 is receiving positive reviews from owners, with several drivers praising the build’s lack of hesitation during lane changes and its smoother decision-making, among others.
The update, which started rolling out on Monday, also adds features like dynamic arrival pin adjustment. So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Owners highlight major improvements
Longtime Tesla owner and FSD user @BLKMDL3 shared a detailed 10-hour impression of FSD v14.2.2, noting that the system exhibited “zero lane change hesitation” and “extremely refined” lane choices. He praised Mad Max mode’s performance, stellar parking in locations including ticket dispensers, and impressive canyon runs even in dark conditions.
Fellow FSD user Dan Burkland reported an hour of FSD v14.2.2’s nighttime driving with “zero hesitations” and “buttery smooth” confidence reminiscent of Robotaxi rides in areas such as Austin, Texas. Veteran FSD user Whole Mars Catalog also demonstrated voice navigation via Grok, while Tesla owner Devin Olsen completed a nearly two-hour drive with FSD v14.2.2 in heavy traffic and rain with strong performance.
Closer to unsupervised
FSD has been receiving rave reviews, even from Tesla’s competitors. Xpeng CEO He Xiaopeng, for one, offered fresh praise for FSD v14.2 after visiting Silicon Valley. Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.
According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that areas of improvement are still present, the Xpeng CEO stated that FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, as it would allow users to bypass intermediate autonomy stages and move closer to Level 4 functionality.
Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
Waymo sues Santa Monica over order to halt overnight charging sessions
