Key Takeaways
- February marked Tesla’s first European sales uptick in more than twelve months, registering an 11.8% year-over-year increase.
- Within the European Union specifically, registrations surged 29% year-over-year to 17,664 vehicles.
- December 2024 represented the previous occasion when Tesla saw positive monthly registration growth in the region.
- BYD surpassed Tesla in European registrations during February, posting 17,954 units—a near-tripling of volume.
- Shares of TSLA advanced 3.5% following the announcement, while Wall Street analysts maintain a Hold rating with a $399.25 average target price.
Tesla’s performance in the European automotive market has reversed course. Following fourteen consecutive months of declining figures, vehicle registrations across Europe for Tesla models increased approximately 12% year-over-year during February, per data from the European Automobile Manufacturers’ Association (ACEA).
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The figures encompass the European Union, United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland. Within EU borders specifically, registrations jumped 29% versus the same period in 2025.
December 2024 stands as the previous month when Tesla achieved positive registration growth in Europe. The intervening period proved challenging—annual 2025 European sales dropped 27.8% to 235,322 vehicles, compared with 326,000 during the prior year.
The downturn stemmed from multiple factors beyond market competition. Elon Musk’s visible association with the Trump administration and endorsement of right-wing political figures triggered consumer resistance throughout Europe, weakening brand perception in what had historically been a core market.
Tesla’s February performance drove TSLA shares up 3.5% during trading. Pre-market activity showed an additional 0.35% gain.
Chinese Competitor Advances
The upswing arrives as BYD maintains aggressive expansion momentum. BYD’s European registrations nearly tripled during February, reaching 17,954 units—marginally exceeding Tesla’s 17,664. Both manufacturers captured 1.8% of the monthly market share.
BYD has demonstrated consistent registration increases each month since ACEA began tracking the company in European statistics last summer. The Chinese manufacturer recently claimed the position of leading global EV seller.
While both BYD and Tesla show growth, European legacy automakers maintain volume leadership. Volkswagen recorded a 2.2% increase in February registrations, totaling 256,452 vehicles. Stellantis experienced a 9.5% rise to 170,816 units.
Continental EV Sector Gains Momentum
February’s data revealed strengthening across Europe’s electric vehicle segment. Battery-electric vehicle registrations climbed nearly 16% throughout the continent. Plug-in hybrid models expanded 33%, while hybrid-electric cars increased over 10%.
Total passenger vehicle registrations rose 1.7% across Europe and 1.4% within the EU, where 865,437 units were sold. Germany posted 3.8% growth and Italy jumped 14%.
Stellantis, having disclosed approximately $26 billion in charges earlier this year related to scaling back EV investments, appears positioned to gain from conventional vehicle demand even as electric vehicle adoption accelerates.
Wall Street analysts maintain measured expectations for Tesla. TSLA carries a Hold consensus rating from TipRanks, derived from 13 Buy recommendations, 11 Hold ratings, and 7 Sell ratings issued over the past three months. The average analyst price target stands at $399.25, suggesting approximately 5% upside potential from present levels.
