MW Tesla finally catches a break in Europe

By William Gavin

Elon Musk's electric-vehicle maker reported sales growth in the region last month, for the first time in over a year

Elon Musk's Tesla has introduced cheaper versions of its best-selling Model Y SUVs and Model 3 sedans in Europe.

Tesla has finally broken its losing streak in Europe after more than a year of poor electric-vehicle sales, according to new industry data.

Tesla's $(TSLA)$ registrations in the European Union hit 13,740 units last month, up 29% compared with February 2025, according to the European Automobile Manufacturers Association. Registrations are the closest available approximation for deliveries.

In the broader European market, which includes the United Kingdom and the European Free Trade Association countries, Tesla registered 17,664 EVs, a jump of nearly 12% compared with a year earlier. Chinese rival BYD (CN:002594) sold 17,954 cars in those markets in February, a 162% year-over-year increase, as it deepens its reach in Europe.

February marks the first month since December 2024 that Tesla's registrations in Europe grew. In 2025, Tesla debuted new, cheaper versions of its best-selling cars and used a variety of incentives to boost sales in the region.

Tesla's stock was up 1.3% in recent morning trading on Tuesday. It has still lost 4.2% in March and has dropped 14.2% amid a three-month losing streak.

Don't miss: 'Do you believe in Elon?': Musk tests Tesla investors' faith with an expensive chip-making plan

Tesla's growth comes as part of wider gains for sellers of electric and hybrid vehicles. Of the roughly 979,000 vehicles registered in Europe last month, about two-thirds were electrified.

Part of Tesla's issues in the region come back to CEO Elon Musk, who has become a polarizing figure as a result of his outspoken political views. In Germany, a major market for EVs, Musk backed a far-right party shortly before parliamentary elections in late 2024. He has also often weighed in on matters in the U.K., the U.S. and elsewhere.

Musk has taken aim at E.U. regulators, including those who have criticized his companies. Last year, after the E.U. imposed a fine of EUR120 million (equivalent to $139 million) on X, Musk's social-media company, he called for the E.U. to be abolished and warned that the continent is pushing a "slow strangulation by overregulation."

"The EU bureaucracy is slowly smothering Europe to death," Musk posted on X last December.

Tesla's latest move to boost its performance in Europe is its push for regulators to approve the sale of its supervised Full Self-Driving advanced driver-assistance software. Last week, the company said it had finished testing its software with the RDW, the Netherlands' vehicle-safety authority.

See: Tesla's push to expand its self-driving technology hits another speed bump

According to Tesla, the agency is reviewing the results and could approve the software for use in the Netherlands by April 10. In a statement, the RDW confirmed it began working with Tesla 18 months ago and is carrying out a review of its test results.

Tesla views the Netherlands as an entry point into Europe, where it has been trying to sell FSD since at least July 2024. The EV maker said that if the Netherlands approves FSD, it opens the door for other European nations to recognize and apply that ruling. Tesla expects potentially E.U.-wide approval during the summer.

"Tesla has the most advanced real-world [artificial intelligence] and hopefully it will be approved soon in Europe," Musk said last month. "I think people in Europe are going to be pretty blown away by how good the Tesla car AI is."

-William Gavin

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

March 24, 2026 11:36 ET (15:36 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.