Key Takeaways
- February marked Tesla’s first European sales growth in over 14 months, with registrations climbing nearly 12% compared to the previous year.
- Within the European Union specifically, Tesla’s deliveries surged 29% year-over-year, totaling 17,664 vehicles across the wider European region.
- The last time Tesla recorded positive monthly registration growth in Europe was in December 2024.
- BYD, Tesla’s Chinese competitor, exceeded Tesla’s European sales for the month with registrations soaring nearly 300% to 17,954 vehicles.
- Shares of TSLA gained 3.5% following the announcement, while Wall Street maintains a Hold rating with a consensus price target of $399.25.
Tesla has broken its European sales drought. Following fourteen consecutive months of year-over-year declines, vehicle registrations for Tesla models increased nearly 12% in February compared to the same period last year, based on figures from the European Automobile Manufacturers’ Association (ACEA).
These figures encompass the European Union along with the United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland. Within the EU specifically, Tesla’s registrations jumped 29% versus February 2025.
December 2024 was the previous instance when Tesla achieved positive monthly registration growth in the European market. The intervening period proved challenging—total 2025 European deliveries plummeted 27.8% to 235,322 vehicles, compared to 326,000 in the prior year.
The downturn stemmed from multiple factors beyond competitive pressures. CEO Elon Musk’s visible association with the Trump administration alongside his endorsement of right-wing European political figures triggered consumer backlash throughout the region, damaging brand perception in what had historically been a key stronghold.
Tesla’s February resurgence propelled TSLA shares upward by 3.5% during regular trading hours. According to recent market data, the stock also gained approximately 0.35% in pre-market activity.
BYD Intensifies Competition
This revival occurs against the backdrop of intensifying competition from Chinese manufacturer BYD. BYD’s European vehicle registrations nearly tripled during February, reaching 17,954 units—marginally surpassing Tesla’s 17,664. Each automaker captured 1.8% of the European market for the month.
BYD has demonstrated consistent registration increases every month since ACEA began tracking the company in European statistics last summer. The manufacturer recently surpassed Tesla to become the global leader in electric vehicle sales.
While both BYD and Tesla showed strength, European legacy automakers continue commanding substantial market share. Volkswagen reported a 2.2% registration increase in February, totaling 256,452 vehicles. Stellantis experienced a 9.5% uptick, reaching 170,816 units.
Continental EV Sector Shows Momentum
February data revealed encouraging trends across Europe’s broader electric vehicle landscape. Battery-electric vehicle registrations advanced nearly 16% continent-wide. Plug-in hybrid models experienced 33% growth, while hybrid-electric vehicles increased over 10%.
Total passenger vehicle registrations throughout Europe rose 1.7%, with EU registrations climbing 1.4% to reach 865,437 vehicles sold. Germany posted 3.8% growth, and Italy surged 14%.
Stellantis, which recently disclosed approximately $26 billion in charges associated with scaling back EV initiatives, appears to be capitalizing on conventional vehicle demand even as electrified vehicle sales expand.
Regarding Wall Street sentiment, analysts remain measured on Tesla’s prospects. TSLA currently carries a Hold consensus rating from TipRanks, derived from 13 Buy recommendations, 11 Hold ratings, and 7 Sell ratings issued within the last three months. The consensus price target stands at $399.25, suggesting approximately 5% potential upside from present trading levels.
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