Key Highlights
- February marked Tesla’s first year-over-year European sales growth in more than 14 months, with registrations climbing nearly 12%.
- Within the European Union specifically, Tesla registrations surged 29% compared to the same period last year, totaling 17,664 vehicles across the wider European region.
- The automaker’s last positive monthly registration figure in Europe occurred in December 2024.
- BYD, Tesla’s Chinese competitor, exceeded Tesla’s European sales in February with registrations soaring to 17,954 units — nearly three times the previous year’s figure.
- Following the announcement, TSLA shares gained 3.5%, while Wall Street maintains a consensus Hold rating with a mean price target of $399.25.
Tesla has broken through a prolonged slump in European markets. Following over 14 consecutive months of year-over-year registration decreases, the electric vehicle manufacturer saw new vehicle registrations climb nearly 12% in February compared to the prior year, based on figures from the European Automobile Manufacturers’ Association (ACEA).
The reported figures encompass the European Union nations along with the United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland. Within EU borders specifically, Tesla’s registrations jumped an impressive 29% versus February 2025.
December 2024 represented Tesla’s previous instance of positive monthly registration growth throughout Europe. The subsequent period proved challenging — overall 2025 European registrations plummeted 27.8% to 235,322 vehicles, compared to 326,000 in the preceding year.
The downturn stemmed from factors beyond competitive pressures. CEO Elon Musk’s prominent association with the Trump administration along with his endorsements of right-wing European political figures sparked controversy throughout the continent, damaging brand perception in what had historically been among Tesla’s most robust markets.
Tesla’s February turnaround propelled TSLA shares upward by 3.5% during regular trading. According to current figures, the stock showed additional gains of approximately 0.35% in pre-market activity.
Chinese Rival BYD Intensifies Competition
This sales recovery unfolds against intensifying competition from Chinese electric vehicle manufacturer BYD. BYD’s European vehicle registrations nearly tripled during February, reaching 17,954 units — narrowly surpassing Tesla’s 17,664 registrations. Both manufacturers captured identical 1.8% market shares for the month.
BYD has demonstrated consistent registration increases each month since ACEA began incorporating the company in European tracking data last summer. The manufacturer recently surpassed Tesla to become the global leader in electric vehicle sales worldwide.
While both BYD and Tesla showed growth, European legacy automakers continue commanding substantial market presence. Volkswagen registered a 2.2% increase in February with 256,452 vehicles delivered. Stellantis experienced a 9.5% rise, registering 170,816 units.
Continental EV Sector Shows Momentum
February data revealed encouraging signs across Europe’s broader electric vehicle landscape. Battery-electric vehicle registrations increased nearly 16% throughout the continent. Plug-in hybrid vehicle registrations expanded 33%, while hybrid-electric models grew over 10%.
Total passenger vehicle registrations across Europe rose 1.7%, with EU registrations up 1.4% to reach 865,437 vehicles sold. Germany posted a 3.8% gain while Italy demonstrated strong performance with a 14% surge.
Stellantis, which disclosed approximately $26 billion in charges earlier this year related to scaling back electric vehicle initiatives, appears to be capitalizing on traditional vehicle demand even as the EV market expands.
Among Wall Street analysts, Tesla maintains a cautious outlook. TipRanks data shows TSLA currently carries a Hold consensus rating, derived from 13 Buy recommendations, 11 Hold ratings, and 7 Sell ratings issued within the past three months. The consensus price target stands at $399.25, suggesting approximately 5% potential upside from present trading levels.
