Tesla Sales Rebound In Europe After Massive Slump

There’s a bright spot in Tesla’s (TSLA) core auto sales, with a slight reversal of fortune in greater Europe.

According to the European Automobile Manufacturers’ Association (ACEA), Tesla electric vehicle registrations (a proxy for sales) in Europe rose to 17,664 units in February, an 11.8% gain compared to a year ago. In January, sales dipped 17%, the last month of a losing streak that had been ongoing since December 2024.

While this February saw a sales jump, it came against a weak February in 2025. Last year, Tesla’s European sales tumbled 27%.

Tesla’s recent losing streak came against the backdrop of rising EV sales in the greater Europe region. Total EV registrations in the region, which includes the UK and the European Free Trade Association, rose 15.8% in February, with overall registrations regardless of powertrain up only 1.7%.

Tesla’s main Chinese competitor, BYD (BYDDY), which sells a mix of pure EVs and hybrids, reported another strong sales month, with February totals jumping 162% to 17,954 units sold in Europe.

BYD’s sales in Europe have soared every month since ACEA began including the company in its data last summer.

While EV sales have slumped somewhat in the US, cheap EVs and hybrids are flourishing in the EU, especially from Chinese automakers like BYD and Li Auto, as buyers across the pond embrace Asian imports.

Maria Grazia Davino, BYD Europe's regional managing director for Germany, Switzerland, Poland, Austria, and the Czech Republic, speaks during a BYD Dolphin Surf electric vehicle presentation in Berlin, Germany, on May 21, 2025. (Reuters/Annegret Hilse) — Maria Grazia Davino, BYD Europe’s regional managing director for Germany, Switzerland, Poland, Austria, and the Czech Republic, speaks during a BYD Dolphin Surf electric vehicle presentation in Berlin, Germany, on May 21, 2025. (Reuters/Annegret Hilse) · REUTERS / REUTERS

As for Tesla, CEO Elon Musk’s deep unpopularity in Europe doesn’t help the company’s image, and Tesla’s lack of new products, such as a cheaper EV, is also hurting sales, leaving it with no competition against inexpensive Chinese imports.

In the US, domestic automakers like Tesla have been insulated from Chinese competition, at least thus far. Automakers like Ford are reportedly discussing ways to build Chinese vehicles in the US via joint ventures. Stellantis is already working with China’s Leapmotor on co-developed vehicles as well.

Tesla, which just killed off its more expensive Model S and Model X EVs, is betting on a future of full self-driving, robotaxis, and Optimus robots to fuel growth. The company’s overall global sales dropped 9% last year after slipping 1% in 2024.