Tesla Snaps 13-Month Sales Losing Skid in Europe

Tesla Motors ended its 13-month-long sales losing streak in the European market last month, according to new industry data released on March 24 by the European Automobile Manufacturers’ Association (ACEA).

The electric vehicle maker sold 17,664 automobiles in February across the UK, the European Union, and the European Free Trade Association.

Last month’s tally represented an 11.8 percent increase from the same time a year ago, according to the ACEA. It is also the first time that Tesla has registered growth since December 2024.

The ACEA uses new-car registrations to gather data, which is considered a proxy for auto sales.

In the first two months of 2026, Tesla registered almost 26,000 cars, up nearly 1 percent year over year.

The upbeat numbers were enough to give Tesla’s stock a boost, with shares up almost 1 percent during the March 24 trading session. This year, Tesla is down about 12 percent.

Wall Street analysts have presented mixed views on the stock’s performance. It currently has a consensus “Hold” rating and a 12-month price target of 6 percent upside, according to MarketBeat.

Market watchers have remained bullish on Tesla, mainly because it is ushering in the era of autonomous driving and robotics.

Late last year, Dan Ives, global head of Tech Research at Wedbush Securities, predicted Tesla’s market cap could reach $3 trillion in 2026.

“Heading into 2026 this marks a monster year ahead for Tesla/Musk as the autonomous and robotics chapter begins,” Ives said in a Dec. 15 post on X. “We believe Tesla hits a $2 trillion market cap in 2026 and in a bull case scenario $3 trillion by end of 2026 … as the AI chapter takes hold at TSLA.”

As of March 24, Tesla’s market cap sits at $1.2 trillion.

Tesla snapping its losing streak coincided with increasing EV sales in the greater Europe region. Overall, total EV registrations rose nearly 2 percent in February.

Petrol-powered car registrations declined by 23.3 percent, while diesel vehicle registrations fell by almost 18 percent, according to the ACEA.

Tesla Battling BYD in Europe

Tesla has struggled in Europe over the past year, driven by a range of factors. Most notably, intensifying competition from Chinese car brands has chiselled away at Tesla’s market share.

China’s BYD outsold Tesla for the second consecutive month in February, with 17,954 vehicles sold. This is up more than 162 percent from last year.

The year-to-date total between the two EV giants has diverged. BYD sold more than 36,000 cars in the two-month span, soaring nearly 163 percent from the same period a year ago.

The Chinese automaker has revved up its presence across the European marketplace. While it has sparked some consternation among public policymakers, drivers appear to be attracted to BYD models.

BYD could build on the momentum in Europe as it plans to begin installing five-minute EV chargers in the coming weeks, in time for the continental debut of its updated Denza Z9GT.

“The ability to add hundreds of kilometres of range in just minutes, even in extremely low temperatures, means the Z9GT perfectly reflects our vision for DENZA: technology that inspires, performance that excites and elegance that defines the future of premium mobility,” BYD Executive Vice President Stella Li said in a March 13 statement.

Despite the European Union imposing a 27 percent tariff on the battery-electric vehicle maker, BYD has sought to circumvent these levies by shifting production outside China and manufacturing its cars in Hungary, Thailand, and Turkey.

Without Tesla offering a cheaper EV in Europe—and other major markets—it will be more difficult for the Elon Musk-led company to compete against low-cost Chinese imports.

Instead of offering the promised $25,000 EV, Tesla will instead begin delivering stripped-down versions of the refreshed Model Y and Model 3 this year.

The Model Y Standard Rear-Wheel Drive, for example, starts at $39,990. The Model 3 Standard Rear-Wheel Drive now starts at $36,990.

By comparison, the entry price for the small Dolphin Surf/Seagull starts at around $26,000.

Overseas, shares of BYD have climbed nearly 9 percent year to date.