Key Highlights
- February marked Tesla’s first year-over-year monthly sales growth in Europe in more than 14 months, with registrations climbing nearly 12%.
- Within the European Union specifically, registrations surged 29% year-over-year, totaling 17,664 vehicles across the wider European territory.
- The last time Tesla recorded positive monthly registration growth in Europe was in December 2024.
- BYD, Tesla’s Chinese competitor, surpassed the EV maker in European sales last month, with registrations soaring nearly threefold to 17,954 vehicles.
- Following the announcement, TSLA shares gained 3.5%, while Wall Street maintains a Hold consensus with an average analyst price target of $399.25.
Tesla has broken through a prolonged European sales drought. Following over a year of consecutive monthly declines, vehicle registrations for the electric automaker increased nearly 12% year-on-year during February, per data from the European Automobile Manufacturers’ Association (ACEA).
New car sales in Europe rose in February after falling in January, while sustained demand for electric vehicles helped Elon Musk's all-electric brand Tesla resume growth for the first time since December 2024, official data showed today. https://t.co/InL7w9mQ9N
— RTÉ Business (@RTEbusiness) March 24, 2026
The figures encompass the European Union, United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland. Focusing solely on EU markets, registrations jumped 29% versus February 2025.
December 2024 marked the previous occasion when Tesla achieved monthly registration growth across Europe. The period that followed proved challenging — 2025 full-year European sales plummeted 27.8% to 235,322 vehicles, compared to 326,000 units the previous year.
The downturn stemmed from factors beyond competitive pressure alone. CEO Elon Musk’s high-profile engagement with the Trump administration alongside his endorsement of right-wing European political figures triggered consumer pushback throughout Europe, damaging brand perception in what was once a core stronghold.
Tesla’s February turnaround propelled TSLA shares higher by 3.5% during the trading session. Based on recent figures, the stock also gained approximately 0.35% during pre-market hours.
Chinese Rival BYD Narrows the Lead
This sales revival arrives while Chinese manufacturer BYD intensifies competitive pressure. BYD’s European vehicle registrations nearly tripled during February, reaching 17,954 units — marginally surpassing Tesla’s 17,664. Each company captured a 1.8% share of the European market for the month.
BYD has demonstrated consistent monthly registration increases since ACEA began tracking the company in European statistics last summer. The manufacturer recently claimed the title of world’s largest electric vehicle seller on a global scale.
Despite the momentum from both BYD and Tesla, legacy European manufacturers continue to lead in total volume. Volkswagen registered a 2.2% increase in February with 256,452 vehicles delivered. Stellantis experienced a 9.5% climb, selling 170,816 units.
European EV Sector Shows Momentum
Europe’s electric vehicle sector exhibited encouraging trends beyond Tesla’s performance in February. Battery-electric vehicle registrations climbed nearly 16% throughout the continent. Plug-in hybrid variants increased 33%, while hybrid-electric vehicles rose over 10%.
Total passenger vehicle registrations across Europe advanced 1.7%, with EU markets posting a 1.4% gain where 865,437 vehicles found buyers. Germany’s market expanded 3.8% and Italy surged 14%.
Stellantis, which disclosed approximately $26 billion in charges earlier this year connected to scaling back EV investments, seems to be capitalizing on conventional vehicle demand even as electric vehicle adoption accelerates.
Among Wall Street analysts, sentiment toward Tesla remains measured. TSLA carries a Hold consensus rating from TipRanks, derived from 13 Buy ratings, 11 Hold ratings, and 7 Sell ratings issued over the preceding three months. The consensus price target stands at $399.25, suggesting approximately 5% potential upside from present trading levels.
