Welcome back to Critical Materials, your daily source for the biggest stories at the intersection of mobility and tech. On today’s docket: Europeans continue to show hesitancy towards Tesla vehicles, the Chevrolet Equinox EV has emerged as the top-selling non-Tesla electric car in the U.S., and Nvidia is making significant strides in autonomous driving technology.
European Market Shows Continued Coolness Towards Tesla
Early in the previous year, Tesla experienced a downturn in sales across Europe. Recent data compiled by Reuters indicates that European consumers remain less enthusiastic about the Elon Musk-led automotive brand, pointing towards a challenging period for the company in the upcoming year. Tesla has reportedly shifted its focus away from developing new mainstream vehicles for traditional use, instead prioritizing robotaxi technology.
In December, new Tesla registrations in the U.K. decreased by 29% to 6,323 units, according to the cited report. For the entirety of the year, Tesla’s U.K. sales saw an 8.9% decline. The situation was particularly stark in Germany, where registered Teslas in 2025 plummeted by 48.4% year-over-year, totaling 19,930 units.
Registrations in France, another significant European market for Tesla, dropped by 37% in 2025. Spain recorded a 4% decrease. Norway, a leading European market for electric vehicles, presented a contrast, with a remarkable 96% of all registered vehicles being electric last year, and Tesla achieving a new sales record in the country.
The challenges for Tesla in Europe appear to be multifaceted. Factors include public reaction to Elon Musk’s political statements, increased competition from emerging Chinese automakers, and a perceived lack of innovation in Tesla’s current vehicle lineup. Despite the introduction of more affordable Model Y and Model 3 variants this year, market indicators suggest these issues are persisting.
Nvidia’s Autonomous Driving Ambitions Gain Momentum
Nvidia has announced advancements in its autonomous driving technology, showcasing developments from the recent CES event. Historically, Nvidia has supplied chips for training self-driving models and onboard computers for automated driving systems. The company has now introduced Alpamayo, a suite of open-source AI models, simulation tools, and datasets designed to facilitate the development of autonomous driving systems by other companies.
A significant development is the near-completion of Nvidia’s full-stack Drive AV system, a competitor to Tesla’s Full Self-Driving (Supervised) technology. This system is set to debut in the new Mercedes-Benz CLA this year, offering Level 2 point-to-point driving capabilities. Under driver supervision, it is engineered to manage complex urban driving scenarios, including traffic lights, cyclists, and unprotected left turns, navigating to a programmed destination.
Early assessments from journalists who experienced the system have been positive. “Tesla should be worried,” noted Andy Hawkins of The Verge, following an early demonstration. Video footage of the system in action has shown smooth operation in congested traffic conditions.
While Elon Musk has previously indicated strong interest from other automakers in licensing Tesla’s FSD technology, Nvidia appears to be capturing market attention with its comprehensive offering. Lucid Motors has also confirmed plans to utilize Nvidia’s technology in its upcoming crossover model. The widespread adoption of Nvidia’s system could position the company as a central player in the development of autonomous vehicles.
Chevrolet Equinox EV Claims Top Spot as Non-Tesla Best-Seller in U.S.
While the Tesla Model Y continues to dominate the U.S. electric vehicle market, the competition for the next most popular EV is heating up. In 2025, the Chevrolet Equinox EV emerged as the leading non-Tesla electric vehicle sold in America. General Motors reported sales of 57,945 units for the model last year, highlighting consumer demand for EVs offering substantial range and competitive pricing.
Overall, GM sold nearly 170,000 EVs in the U.S. in 2025, representing a 48% increase compared to the previous year. The Chevrolet Equinox EV surpassed the Ford Mustang Mach-E, which recorded 51,620 units sold by the end of the year. In 2023, the Chevrolet Bolt EV/EUV held the top position among non-Tesla EVs with over 60,000 sales before its discontinuation.
Looking Ahead: The 2026 Electric Vehicle Landscape
The electric vehicle market continues to evolve, with new models and updated offerings expected to shape the competition. The return of the Chevrolet Bolt EV with a sub-$30,000 price point, along with enhancements to the Nissan Leaf and the introduction of new vehicles like the Rivian R2, suggests a dynamic year ahead for consumers seeking alternatives to Tesla’s current offerings.