Tesla Inc. car registrations in the EU dropped 34.2% to 12,130 in November and 38.8% to 129,024 for the year. The decline is part of a larger issue affecting Tesla globally, despite CEO Elon Musk’s insistence that Tesla is an AI and robotics company.

Tesla’s sales in the EU have hit a three-year low, signaling a wider decline in the market.

Despite falling car sales, Tesla’s stock is thriving as investors see it as an AI and robotics firm.

Tesla’s U.S. sales plummeted 23% to 39,800 in November, hitting a three-year low. Sales in China also decreased, with just over 73,000 cars sold, down almost 1% year over year.

In the EU, BYD registrations surged 235.2% to 16,158, posing a significant threat to Tesla. BYD, Tesla’s biggest rival, has expanded into markets outside of China.

Tesla’s stock has soared 20% this year, reaching $485. Its market cap is $1.61 trillion, making it the world’s eighth most valuable company.

Tesla is testing its self-driving robotaxi in Austin before rolling out tests in Nevada, Arizona, and Florida. Competitors like Alphabet’s Waymo and legacy car manufacturers are also entering the autonomous vehicle market.

Tesla’s claim to be an AI and robotics company is uncertain, with its humanoid robot, Optimus, failing to impress.

If investors shift back to viewing Tesla as a car company, the stock could face challenges.

Read more at Yahoo Finance: Tesla’s European Sales Plunge