Tesla (TSLA) Stock Rises 3% as European Sales Finally Bounce Back

TLDR

• Tesla posted its first monthly sales increase in Europe in over a year, up nearly 12% year-on-year in February.
• EU-only sales climbed 29% year-on-year, reaching 17,664 units across the broader European market.
• Tesla hadn’t logged a monthly registration increase in Europe since December 2024.
• Chinese rival BYD outsold Tesla in Europe last month, with registrations nearly tripling to 17,954 units.
• TSLA stock was up 3.5% on the news, with Wall Street analysts holding a consensus Hold rating and an average price target of $399.25.

Tesla’s European sales have finally turned a corner. After more than a year of monthly declines, new-car registrations for Tesla models rose nearly 12% year-on-year in February, according to the European Automobile Manufacturers’ Association (ACEA).

The data covers the EU, the U.K., Iceland, Liechtenstein, Norway, and Switzerland — and in the EU alone, sales climbed 29% compared to February 2025.

The last time Tesla recorded a monthly registration increase in Europe was December 2024. Since then, it had been a rough stretch — full-year 2025 European sales fell 27.8% to 235,322 units, down from 326,000 the year before.

Tesla, Inc., TSLA

The slump was tied to more than just competition. Elon Musk’s public involvement with the Trump administration and his support for right-wing politicians drew backlash across Europe, denting the brand’s appeal in a market that had previously been one of its strongest.

Tesla’s February rebound pushed TSLA stock up 3.5% on the day. As of the latest data, the stock was also up around 0.35% in pre-market trading.

BYD Closes the Gap

The recovery comes as Chinese automaker BYD continues to pile on the pressure. BYD’s European registrations nearly tripled in February to 17,954 units — just edging past Tesla’s 17,664. Both companies held a 1.8% market share for the month.

BYD has seen surging registrations every month since ACEA started including it in European data last summer. The company recently overtook Tesla as the world’s biggest EV seller globally.

Despite BYD’s growth and Tesla’s rebound, European domestic brands still dominate in volume. Volkswagen posted a 2.2% rise in February registrations to 256,452 vehicles. Stellantis saw a 9.5% jump to 170,816 units.

Broader EV Market Picks Up

Europe’s EV market also showed broader signs of life in February. Battery-electric vehicle registrations rose nearly 16% across the continent. Plug-in hybrid models grew 33%, and hybrid-electric cars were up over 10%.

Overall passenger car registrations rose 1.7% in Europe and 1.4% in the EU, where 865,437 vehicles were sold. Germany was up 3.8% and Italy jumped 14%.

Stellantis, which earlier this year announced roughly $26 billion in charges related to pulling back from EVs, appears to be benefiting on the traditional vehicle side even as EV demand grows.

On Wall Street, analysts maintain a cautious stance on Tesla. TSLA currently holds a Hold consensus from TipRanks, based on 13 Buys, 11 Holds, and 7 Sells over the past three months. The average price target sits at $399.25, pointing to roughly 5% upside from current levels.

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