Tesla (TSLA) Stock Jumps 3.5% Following European Sales Recovery in February

Key Takeaways

• Tesla recorded its first European sales growth in more than a year, with February registrations climbing nearly 12% compared to the previous year.
• Within the European Union specifically, Tesla’s sales surged 29% year-over-year, totaling 17,664 registrations across the wider European region.
• The last time Tesla experienced monthly registration growth in Europe was in December 2024.
• Chinese competitor BYD surpassed Tesla in European deliveries last month, with registrations jumping nearly threefold to 17,954 vehicles.
• TSLA shares gained 3.5% following the announcement, while Wall Street maintains a Hold consensus rating with an average target price of $399.25.

Tesla has broken through a challenging period in Europe. Following over twelve consecutive months of declining figures, the electric vehicle manufacturer saw new vehicle registrations increase by nearly 12% year-over-year in February, based on data from the European Automobile Manufacturers’ Association (ACEA).

The figures encompass the European Union, United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland. Within the EU specifically, Tesla’s deliveries jumped 29% versus February 2025.

December 2024 marked the previous instance of Tesla achieving month-over-month registration growth in the European market. The intervening period proved challenging—2025 full-year European deliveries tumbled 27.8% to 235,322 vehicles, a significant drop from the prior year’s 326,000 units.

Tesla, Inc., TSLA

The decline wasn’t solely attributable to competitive pressures. CEO Elon Musk’s visible association with the Trump administration alongside his endorsement of right-leaning European political figures sparked consumer resistance throughout the region, damaging brand perception in what had historically been a key market for the company.

Tesla’s February turnaround propelled TSLA shares upward by 3.5% during trading. According to recent market activity, the stock also gained approximately 0.35% in pre-market sessions.

BYD Intensifies Competition

This positive momentum arrives as Chinese electric vehicle manufacturer BYD maintains aggressive market expansion. BYD’s February European registrations nearly tripled year-over-year, reaching 17,954 vehicles—marginally surpassing Tesla’s 17,664 deliveries. Each automaker captured 1.8% of the market during the month.

BYD has demonstrated consistent registration increases each month since ACEA began tracking the company in European statistics last summer. The Chinese automaker recently claimed the position of world’s leading EV manufacturer by global sales volume.

While both BYD and Tesla showed strength, traditional European manufacturers continue leading in absolute numbers. Volkswagen reported a 2.2% registration increase in February, totaling 256,452 vehicles. Stellantis experienced a 9.5% surge to 170,816 units.

European EV Sector Gains Momentum

Europe’s electric vehicle segment displayed encouraging signs throughout February. Battery-electric vehicle registrations advanced nearly 16% across the region. Plug-in hybrid models experienced 33% growth, while hybrid-electric vehicles increased over 10%.

Total passenger vehicle registrations grew 1.7% across Europe and 1.4% within the EU, where 865,437 units were delivered. Germany posted 3.8% growth, and Italy surged 14%.

Stellantis, which earlier announced approximately $26 billion in write-downs connected to scaling back EV ambitions, appears to be capitalizing on conventional vehicle demand even as electric vehicle adoption accelerates.

Wall Street analysts currently maintain a measured outlook on Tesla. TSLA carries a Hold consensus rating from TipRanks, derived from 13 Buy recommendations, 11 Hold ratings, and 7 Sell opinions over the preceding three months. The consensus price target stands at $399.25, suggesting approximately 5% potential upside from present trading levels.

The post Tesla (TSLA) Stock Jumps 3.5% Following European Sales Recovery in February appeared first on Blockonomi.