Electric car manufacturer Tesla (NASDAW:TSLA) has had a bad start to the year, losing market share across key regions, according to a note from USB.

The bank said on Friday that the company’s European sales plunged 51% year on year, making it the “biggest loser” in the region. Chinese retail sales also dropped 15% year on year as domestic brand continued to gain traction.

UBS’s analysis says that January was “very poor month for Tesla,” noting that global electric vehicle (EV) demand remains strong, but competition is intensifying.

In Europe, EV sales grew 33% year-over-year as automakers pushed to meet CO2 compliance targets. Meanwhile, UBS stated that Chinese new energy vehicle (NEV) brands expanded their market share, with Xpeng (NYSE:XPEV) surging 251% year-over-year due to new product launches.

The U.S. market was more stable, with EV sales increasing 25% compared to last year. However, overall U.S. auto inventories remained elevated in terms of days’ supply, despite sequential declines, according to UBS. 

The report also highlighted the ongoing debate over U.S. auto tariffs, which could impact global automakers. UBS warned that a potential U.S. tariff on European vehicles could significantly affect German automakers.

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