The EV winter is going global. Here's why it's hitting Tesla hard.

"The EV winter is going global - and even Tesla isn't immune. Electric vehicle sales across the auto industry fell 3% worldwide in January compared to the same period last year, according to data from Benchmark Intelligence published Friday, as policy changes in the US and China threaten to throw the industry into a deep freeze. In North America and China, sales fell 33% and 20% respectively last month."

"Unlike many other Western carmakers in China, Tesla has largely managed to fend off a wave of local rivals and protect its market share in the world's largest auto market. However, a slowing EV market and a lack of new products - barring refreshes and variants, Tesla hasn't launched a new vehicle in China since the Model Y in 2021 - has left the US automaker vulnerable."

"EV sales in the US have plummeted since the removal of the $7,500 tax credit for new electric vehicles in September, and CEOs and industry experts have warned of a bumpy few years ahead. In China, EVs accounted for around half of all vehicles sold last year - but companies are facing their own challenges after the government moved to end a key tax exemption for EV purchases and adjusted its trade-in scheme to make it less generous for battery-powered vehicles."

Global electric vehicle sales fell 3% in January year-on-year, driven by steep declines in North America (down 33%) and China (down 20%). US EV sales plunged after removal of the $7,500 tax credit for new EVs in September, triggering warnings of a bumpy few years. China’s market contraction followed the end of a tax exemption for EV purchases and a less generous trade-in scheme, despite EVs representing around half of all vehicles sold there last year. Tesla’s China sales dropped below 20,000 in January, its lowest since late 2022, and the company faces competition and product gaps.

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