Tesla resumes sales growth in Europe after a year-long slump. What about the stock?

Tesla sales in February resumed growth in Europe for the first time since December 2024, according to data from the European Automobile Manufacturers Association (ACEA). This was the first signal of a recovery in demand after a prolonged slump associated, among other things, with Elon Musk's controversial political activities, and against the backdrop of increasing competition in the electric car market.

Tesla car registrations in February rose 11.8% year-on-year to 17,664 units in the EU, UK, Iceland, Liechtenstein, Norway and Switzerland, ACEA data shows. The figure increased for the first time after 13 months of decline. In the EU alone, sales increased by 29% year-on-year.

Tesla accounted for 1.8% of the total number of registrations: the same share was taken by its main competitor - Chinese BYD. In terms of the number of cars it slightly surpassed Tesla - 17,954 units, which is 162% more than it was in February 2025.

Local automakers remained the largest sellers in Europe in absolute terms. Thus, Volkswagen increased the number of car registrations by 2.2% to 256,452 units, while sales of Stellantis, which produces Jeep, grew by 9.5% to 170,816 units, according to ACEA data, which takes into account both electric cars and other types of vehicles.

The total number of vehicle registrations in the European Union, the UK and the European Free Trade Association increased by 1.7% in February to 979,321. Registrations of all-electric cars, plug-in hybrids and hybrids in European countries rose by 20.6%, 32.1% and 10% respectively. Together, they accounted for 67% of all registrations in the EU, up from 58.5% a year earlier, according to ACEA.

Sales of all-electric cars and plug-in hybrids in Europe continue to grow thanks to the emergence of more affordable models and government support encouraging a shift to electric vehicles, Reuters notes. Environmental organizations, however, warn that the sales growth is partly due to the fact that some gasoline models have begun to be positioned as "mild hybrids," which only marginally reduce emissions, the agency reports.

In January, Tesla's sales in Europe fell 17% year-over-year, and for the full year 2025, the drop was 27%, Barron's recalls. There are several reasons for this, including CEO Elon Musk's controversial involvement with the U.S. government and increased competition: the company's performance was much lower than that of its Chinese rival BYD, whose sales in 2025 grew by 269%.

Tesla shares were adding more than 1% in trading on Tuesday, March 24. A day earlier, they rose 3.5%, breaking a three-day decline during which they lost nearly 8%. Over the past five weeks (before the current one), their value has declined by about 12%, Barron's notes.

"Tesla is entering a key period in the next 18 months: the company will scale its robotaxi service with the launch of its new Cybercab while ramping up mass production of its humanoid robot Optimus. We believe it makes sense to own the stock during this period," Baird analyst Ben Kallo wrote on March 23 (quoted in Barron's).

Of the 56 analysts covering Tesla securities, 26 recommend buying them, another 21 are neutral and advise holding them in a portfolio, while nine advise selling them.

This article was AI-translated and verified by a human editor