Key Takeaways
- Tesla recorded its first European sales growth in more than 14 months, with February registrations climbing nearly 12% compared to the same period last year.
- Within EU borders specifically, Tesla’s sales surged 29% year-over-year, totaling 17,664 units throughout the wider European region.
- The last positive monthly registration figure for Tesla in Europe occurred in December 2024.
- BYD, Tesla’s Chinese competitor, narrowly surpassed Tesla’s European sales last month, recording 17,954 registrations — almost triple its previous year’s figure.
- TSLA shares rallied 3.5% following the announcement, while Wall Street maintains a Hold rating with a $399.25 average price target.
Tesla’s performance in the European automotive market has reached a significant turning point. Following over fourteen consecutive months of declining figures, the electric vehicle manufacturer recorded an approximately 12% year-over-year increase in new vehicle registrations during February, based on figures released by the European Automobile Manufacturers’ Association (ACEA).
The statistics encompass markets including the European Union, United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland. Within EU territories specifically, Tesla’s registrations jumped 29% when compared to February 2025 figures.
The previous occasion when Tesla achieved positive monthly registration growth in European markets was December 2024. The intervening period proved challenging — overall 2025 European sales tumbled 27.8% to 235,322 vehicles, a significant drop from the prior year’s 326,000 units.
The downturn wasn’t solely attributable to competitive pressures. Elon Musk’s visible association with the Trump administration and his endorsement of right-leaning European political figures triggered consumer resistance throughout Europe, undermining the brand’s reputation in what had historically been a key stronghold.
Tesla’s February turnaround propelled TSLA shares upward by 3.5% during the trading session. Based on the most recent market data, the stock showed an additional 0.35% gain in pre-market activity.
BYD Narrows the Distance
This recovery unfolds as Chinese automotive manufacturer BYD maintains aggressive competitive pressure. BYD’s European vehicle registrations nearly tripled during February, reaching 17,954 units — marginally exceeding Tesla’s 17,664 figure. Both manufacturers captured 1.8% of the European market share 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 claimed the position of world’s largest EV seller on a global scale.
Notwithstanding BYD’s expansion and Tesla’s recovery, European-based automotive brands continue to command substantial volume. Volkswagen reported a 2.2% increase in February registrations, totaling 256,452 vehicles. Stellantis experienced a 9.5% elevation to 170,816 units.
Continental EV Sector Demonstrates Growth
Europe’s electric vehicle sector displayed encouraging momentum throughout February. Battery-electric vehicle registrations increased nearly 16% continent-wide. Plug-in hybrid variants grew 33%, while hybrid-electric automobiles rose over 10%.
Total passenger vehicle registrations advanced 1.7% across Europe and 1.4% within the EU, where 865,437 vehicles were registered. Germany experienced 3.8% growth and Italy surged 14%.
Stellantis, which earlier in the year disclosed approximately $26 billion in charges associated with scaling back EV investments, appears to be capitalizing on conventional vehicle demand even as the EV segment expands.
Within the Wall Street analyst community, sentiment toward Tesla remains measured. TSLA currently carries a Hold consensus rating from TipRanks, derived from 13 Buy recommendations, 11 Hold ratings, and 7 Sell ratings issued during the previous three months. The average analyst price target stands at $399.25, suggesting approximately 5% potential upside from present trading levels.
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