Tesla just posted rare growth in China. Here's what sparked the sales momentum.

China's automobile market might face suboptimal demand in 2026, given a tightening regulatory environment and uncertainties regarding Beijing's auto policy, Nomura analysts write in a note. The auto market will see brutal competition as demand isn't expected to rise while the government is set to roll back EV incentives, they say. EV sales growth will likely slow compared with previous years, they add. More Chinese automakers will seek growth opportunities in the global market to hedge against domestic uncertainties next year, they say. Nomura expects China's 2026 EV retail sales to hit 14.6 million units. Nomura has buy ratings on BYD and XPeng. BYD could fight back in 2026 with its continued efforts in research and development as well as advantage in supply chain integration, considering the lessons it learned this year. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

Sime Darby's Malaysia motors division may see continued on-year growth, supported by strong demand for BYD models after a 99% jump in 3Q sales driven by active launches, Affin Hwang IB analyst Afifah Ishak says in a note. This should help offset weaker BMW sales volumes, which fell 16.3% on-year, she says. However, average selling prices may soften as BYD's mass-market models dilute BMW's premium offerings, she reckons. Associate UMW Toyota's modest 3.3% sales increase points to steady demand, but she cautions that intensifying competition and heavy promotions could pressure margins ahead. Affin Hwang maintains a sell rating on Sime Darby as its earnings outlook may remain pressured, and keeps the target price at MYR1.59. Shares are 1.0% higher at MYR1.96. (yingxian.wong@wsj.com)

Sime Darby's Malaysia motors division may see continued on-year growth, supported by strong demand for BYD models after a 99% jump in 3Q sales driven by active launches, Affin Hwang IB analyst Afifah Ishak says in a note. This should help offset weaker BMW sales volumes, which fell 16.3% on-year, she says. However, average selling prices may soften as BYD's mass-market models dilute BMW's premium offerings, she reckons. Associate UMW Toyota's modest 3.3% sales increase points to steady demand, but she cautions that intensifying competition and heavy promotions could pressure margins ahead. Affin Hwang maintains a sell rating on Sime Darby as its earnings outlook may remain pressured, and keeps the target price at MYR1.59. Shares are 1.0% higher at MYR1.96. (yingxian.wong@wsj.com)

By Nina Kienle

Chinese automaker BYD again logged higher new-car registrations in Europe last month, as it continues to expand in the continent amid pressure in its home market.

New-car registrations for BYD models, a reflection of sales, increased to 17,470 vehicles from 5,695 vehicles in October 2024, according to the European Automobile Manufacturers' Association, an industry body also known as ACEA.

The figure includes data from the European Union as well as the U.K., Iceland, Liechtenstein, Norway and Switzerland. In the EU alone, BYD registrations rose to 13,350 vehicles from 4,525 vehicles.

While China's largest automaker is continuing its streak of logging higher sales, absolute sales remain far below those of established domestic carmakers like Germany's Volkswagen or Stellantis, the owner of the Jeep and Dodge brands. Both companies respectively sold 308,508 and 157,350 vehicles in Europe last month, according to ACEA.

Meanwhile, registrations for Elon Musk's Tesla fell 48% in the EU last month, according to ACEA data, continuing the streak of disappointing monthly sales for the company this year. Tesla has been dealing with the fallout from Musk's involvement with the Trump administration that came to an end a few months ago.

In the year to date, battery-electric cars reached 16.4% of the EU market share, up from 13.2% in the same period of the prior year. In the first ten months of the year, battery-electric vehicle sales jumped 39% in Germany. Registrations of hybrid-electric cars increased 16%, while plug-in-hybrid models increased by 32%.

ACEA said EU car registrations increased 5.8% in October to 916,609 vehicles, up 7.8% in Germany and up 2.9% in France but down 0.5% in Italy.

Write to Nina Kienle at nina.kienle@wsj.com

By Nina Kienle

Chinese automaker BYD again logged higher new-car registrations in Europe last month, as it continues to expand in the continent amid pressure in its home market.

New-car registrations for BYD models, a reflection of sales, increased to 17,470 vehicles from 5,695 vehicles in October 2024, according to the European Automobile Manufacturers' Association, an industry body also known as ACEA.

The figure includes data from the European Union as well as the U.K., Iceland, Liechtenstein, Norway and Switzerland. In the EU alone, BYD registrations rose to 13,350 vehicles from 4,525 vehicles.

While China's largest automaker is continuing its streak of logging higher sales, absolute sales remain far below those of established domestic carmakers like Germany's Volkswagen or Stellantis, the owner of the Jeep and Dodge brands. Both companies respectively sold 308,508 and 157,350 vehicles in Europe last month, according to ACEA.

Meanwhile, registrations for Elon Musk's Tesla fell 48% in the EU last month, according to ACEA data, continuing the streak of disappointing monthly sales for the company this year. Tesla has been dealing with the fallout from Musk's involvement with the Trump administration that came to an end a few months ago.

In the year to date, battery-electric cars reached 16.4% of the EU market share, up from 13.2% in the same period of the prior year. In the first ten months of the year, battery-electric vehicle sales jumped 39% in Germany. Registrations of hybrid-electric cars increased 16%, while plug-in-hybrid models increased by 32%.

ACEA said EU car registrations increased 5.8% in October to 916,609 vehicles, up 7.8% in Germany and up 2.9% in France but down 0.5% in Italy.

Write to Nina Kienle at nina.kienle@wsj.com

By WSJ Staff

Asian semiconductor stocks tumbled on renewed fears of an artificial-intelligence bubble, tracking U.S. declines from Thursday. European chip shares fell too.

• Shares in Samsung Electronics and SK Hynix-the two largest memory-chip makers- dropped more than 5%. The South Korean companies supply high-bandwidth memory products to Nvidia.
• Taiwanese heavyweights TSMC and contract electronics maker Foxconn Technology, formally known as Hon Hai, both fell more than 4%.
• In Japan, technology investment conglomerate SoftBank plunged more than 10%.
• Semiconductor Manufacturing International, China's biggest contract chip maker, lost more than 6% in Hong Kong.
• European chip stocks also fell. Shares of ASML dropped roughly 6% in the Netherlands, while STMicroelectronics, which supplies Apple and Tesla, lost less than 2% in Paris.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).