Volkswagen Passes Tesla in Europe EV Market

The competitive backdrop has turned harsher for Tesla. Its shares closed at $352.84 on Sept. 29, down from $372.11 on Sept. 25, with the stock now sitting well below its 200-day moving average near $394.69. The recent drop has pushed the relative strength index down to 39.3, a sign momentum has weakened after a strong midyear run.

Volkswagen’s U.S.-listed shares have also lost ground, with VWAGY closing at $8.03 on Sept. 29, below its 50-day moving average of $8.76 and its 200-day average of $9.86. The technical picture points to a market that is still cautious on the German group even as its EV brands, especially Skoda, compete more aggressively on price.

The broader story is that European EV demand is no longer being won only by the company with the most recognizable badge. Lower-priced trims, longer dealer networks and local brand loyalty are increasingly deciding who captures buyers as incentives fade and consumers become more cost sensitive.

That puts Volkswagen in a better position to defend volume in Europe, while Tesla faces a tougher fight to protect share without leaning further on discounts. The next test for both groups will be whether EV demand can reaccelerate without additional price cuts, and whether Volkswagen can convert Skoda’s momentum into sustained profitability.