Key Takeaways
- February marked Tesla’s first monthly European sales growth in more than 14 months, with registrations climbing nearly 12% compared to last year.
- Within EU borders specifically, Tesla’s registrations surged 29% year-over-year, totaling 17,664 vehicles throughout the wider European region.
- The automaker’s previous monthly registration gain in Europe occurred in December 2024.
- China’s BYD narrowly edged out Tesla in European sales last month, posting nearly triple its prior registrations at 17,954 vehicles.
- TSLA shares advanced 3.5% following the report, while Wall Street maintains a Hold consensus with an average analyst price target of $399.25.
Tesla’s European market performance has shown its first signs of recovery after an extended period of contraction. New vehicle registrations for the electric automaker increased nearly 12% year-over-year during February, data from the European Automobile Manufacturers’ Association (ACEA) reveals.
The figures encompass the European Union, United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland. When narrowed to EU member states exclusively, Tesla’s sales jumped an impressive 29% versus February 2025.
December 2024 represents the previous occasion when Tesla achieved positive monthly registration growth in the European market. The intervening period proved challenging — total 2025 European sales plummeted 27.8% to 235,322 vehicles, a significant drop from the prior year’s 326,000 units.
The downturn stemmed from factors beyond competitive pressures alone. CEO Elon Musk’s public political engagement with the Trump administration and endorsements of right-wing European political figures triggered consumer backlash throughout the region, undermining the brand’s standing in what had been a historically robust market.
Tesla’s February turnaround lifted TSLA shares 3.5% during the trading session. Pre-market activity showed an additional 0.35% gain according to recent figures.
Chinese Competitor BYD Applies Pressure
The positive momentum arrives amid intensifying competition from Chinese manufacturer BYD. February saw BYD’s European registrations nearly triple to 17,954 units — marginally surpassing Tesla’s 17,664 deliveries. The two manufacturers each captured 1.8% market share during the month.
BYD has demonstrated consistent registration increases throughout every month since ACEA incorporated the company into European tracking data last summer. Globally, BYD has eclipsed Tesla as the leading electric vehicle manufacturer by sales volume.
While both BYD and Tesla gain traction, European-headquartered automakers maintain commanding volume advantages. Volkswagen recorded a 2.2% registration increase in February, reaching 256,452 vehicles. Stellantis experienced a 9.5% climb to 170,816 units.
Continental EV Sector Demonstrates Momentum
February data indicates strengthening across Europe’s broader electric vehicle landscape. Battery-electric vehicle registrations advanced nearly 16% throughout the continent. Plug-in hybrid variants expanded 33%, while hybrid-electric automobiles grew over 10%.
Total passenger vehicle registrations increased 1.7% across Europe and 1.4% within EU boundaries, where 865,437 cars were sold. Germany experienced 3.8% growth, and Italy surged 14%.
Stellantis, which disclosed approximately $26 billion in charges earlier this year connected to scaling back EV investments, appears to be capitalizing on conventional vehicle demand even as electric vehicle adoption accelerates.
Wall Street maintains measured expectations regarding Tesla. TSLA carries a Hold consensus rating from TipRanks, derived from 13 Buy recommendations, 11 Hold ratings, and 7 Sell opinions issued during the past three months. The average analyst price target stands at $399.25, suggesting approximately 5% potential upside from present trading levels.
