A day of reckoning is unfolding for two of the world’s most influential tech titans, sending starkly conflicting signals through a nervous European market.
While a blockbuster earnings report from the AI kingpin Nvidia is providing a much-needed dose of optimism, a catastrophic collapse in Tesla’s European sales is painting a grim picture of a one-time market darling in the throes of a brutal unraveling.
European markets are heading for a higher open on Thursday, a fragile relief rally driven almost entirely by Nvidia.
The chip giant reported quarterly results that came in just above expectations and, crucially, confirmed that its blistering sales growth will remain above 50 percent this quarter.
The news, a testament to the resilience of the AI boom, has helped calm a market that was desperate for a positive catalyst.
The great unraveling: a 40% collapse
But beneath this surface-level calm, a far more dramatic and troubling story is taking shape. New sales figures released by the European Automobile Manufacturers Association (ACEA) have revealed a stunning 40 percent collapse in Tesla’s European sales last month.
The company sold just 8,837 vehicles across the continent in July, a dramatic drop from 14,769 in the same month last year.
This is not a one-off blip; it is the continuation of a deep and worrying slump that began at the start of the year.
The collapse continued despite a recent revamp of Tesla’s signature Model Y, a clear sign that the brand is facing a severe crisis, potentially fueled by a backlash against CEO Elon Musk’s political views.
A changing of the guard on Europe’s roads
As Tesla falters, a new challenger is aggressively seizing its crown. The same sales data shows that the Chinese EV-maker BYD is in the midst of an explosive expansion.
The Shenzhen-based company more than tripled its sales year-on-year in July, a staggering rise of 225 percent. This surge gave BYD a 1.2 percent market share in Europe, now decisively ahead of Tesla’s 0.8 percent.
The data confirms a trend that began in April, when BYD first overtook Tesla in European sales.
The Chinese giant, which is now competing with Tesla to be the world’s biggest EV maker, has launched an aggressive sales push in key markets like the UK, often undercutting its rivals on price.
In Britain, where Tesla’s sales slumped 59 percent, BYD’s sales quadrupled.
A cloud over corporate Europe
The day’s corporate news is not all about tech and cars. In France, the spirits giant Pernod Ricard reported a 3 percent decline in full-year sales, a performance dragged down by weak consumer sentiment in China and ongoing tariff uncertainty in the United States.
And in the UK, the share price of the power giant Drax is tumbling in early trading after the news that the country’s financial regulator is probing whether its recent annual reports complied with listing rules, adding another layer of uncertainty to a complex and volatile market.
The post Europe markets open: Stocks rise as Nvidia earnings beat offsets Tesla’s 40% sales slump appeared first on Invezz