Tesla's European Sales Rise for First Time in Over a Year

Tesla has recorded its first monthly rise in European car sales in over a year, offering a welcome boost to the electric vehicle (EV) manufacturer as rivalry with Chinese giant BYD continues to sharpen. New-car registrations across the European Union (EU), the UK, Iceland, Liechtenstein, Norway and Switzerland climbed nearly 12 per cent year-on-year in February to 17,664 units, according to the European Automobile Manufacturers' Association (ACEA). Within the EU alone, the increase was more pronounced, with registrations rising 29 per cent compared to the same period last year, Morning Star has reported.

The figures confirm that Tesla retains a strong foothold among European drivers seeking EVs, despite seeing a prolonged period of declining sales. Prior to February, the company had not recorded a monthly registration increase in Europe since December 2024, per ACEA data.

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Part of that downturn was attributed to a consumer backlash linked to Elon Musk's role within the Trump administration, where he led the Department of Government Efficiency before departing in late May.

At the same time, pressure from BYD has been mounting steadily. The Chinese manufacturer, which offers both fully electric and hybrid models, has posted registration growth every month since ACEA first began tracking its figures last summer, and recently overtook Tesla to become the world's largest EV seller.

In February, BYD's European registrations almost tripled to 17,954 units, edging ahead of Tesla in monthly sales. That said, both companies remain some distance behind traditional European manufacturers in outright volume. Volkswagen posted a 2.2 per cent rise in registrations to 256,452 vehicles, while Stellantis, the group behind Jeep, among other marques, saw sales increase 9.5 per cent to 170,816 units.

The broader European new-car market showed modest improvement, with passenger vehicle registrations up 1.7 per cent across the continent and 1.4 per cent within the EU. Germany recorded a 3.8 per cent rise, whilst Italy saw growth of 14 per cent.

Within the EV segment specifically, battery-electric vehicle registrations grew by nearly 16 per cent last month. Hybrid-electric cars rose by more than 10 per cent, with plug-in hybrids leading the way at 33 per cent growth.

The positive figures come at a time when a number of carmakers continue to reassess their electrification strategies in response to sluggish consumer uptake. 

Stellantis had announced in February that it would take charges of approximately $26 billion as part of a strategic pull-back from electric vehicles following weaker-than-anticipated demand.