Tesla shares slipped at the start of the week as investors considered how a weaker electric-vehicle market might affect the company’s short-term prospects.

The stock dropped 1.1% to $407.37 in early trading, lagging behind the wider market. Tesla shares have fallen in three of the last four weeks, including a 1.3% dip most recently, even though a short three-day rally added only $1.19 per share at the end of the week.

The overall EV market is facing challenges. In January, U.S. EV sales dropped 30% from last year and accounted for just 6% of all new-car sales. When the $7,500 federal tax credit ended in September, demand fell, leading automakers to lower prices. Average EV prices were down 3% in December from a year earlier, and Cantor Fitzgerald analyst Andres Sheppard expects this trend to continue as a “major theme” this year.

Yet Tesla’s relative position has strengthened amid the downturn. The company’s January sales declined just 17%, well outpacing the broader market’s contraction, and its domestic market share climbed to approximately 61%, up from 57% in December. During the period when the federal tax credit remained in effect, Tesla’s share had slipped below 50%.

Tesla shares are down about 8% so far this year but are still up 22% over the past 12 months, beating the broader market by around seven points. The stock hit a record close to $500 in December, even though EV sales have dropped for two years in a row. This shows investors are excited about Tesla’s work in artificial intelligence, like self-driving ride-hailing and robotics. In June, Tesla started a robo-taxi service in Austin, Texas, when shares were around $322.

Even so, Tesla’s main business is still selling cars, which brings in most of its revenue. These sales will need to support a big spending plan of about $20 billion this year, which is nearly twice what the company usually spends on equipment. Tesla is increasing its production capacity for self-driving vehicles and robotics.