Shares in American electric vehicle (EV) maker Tesla (TSLA) are down about 11% since the start of the year, in part due to its sales troubles in key markets such as Europe. However, the automaker has been mounting a comeback in the region, and the latest data indicate that Tesla might be able to ride on European drivers shunning petrol cars as the U.S.-Israel-Iran war fuels a surge in energy prices.
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EV Sales Climb in Key European Markets
According to new data from EV advocacy group E-Mobility and auto research outfit New Automotive, about 29% more new battery-electric vehicles (BEVs) were sold during the first three months of this year compared to the same period last year. This growth was recorded across 15 key European markets.
Across the five biggest EV markets in the EU, the year-over-year registration growth is much bigger. Year-to-date, registration, which is a proxy for sales, across Germany, France, Spain, Italy, and Poland, was up over 40% from the prior-year period.
Is Tesla Turning the Corner in Europe?
This comes as recent data has shown that Tesla’s vehicle registration in Germany — which has been seeing soft demand for a while — accelerated by 315% year-over-year in March. In addition, data from February showed that Tesla sales picked up significantly across several markets in the continent while falling in others.
They rose year-over-year in:
- France — by 55%
- Spain — by 74%
- Norway — by 32%
Tesla’s barbell strategy in Europe, including the launch of a cheaper Model 3 Standard in December, might just be paying off. Moreover, Tesla recently reported a 6.3% rise in its global vehicle delivery — although below the consensus on Wall Street — after its overall sales fell for the second consecutive year in 2025.
Is Tesla a Good Stock to Buy?
On Wall Street, Tesla’s shares remain a Hold based on analysts’ consensus rating. This breaks down to 13 Buys, 11 Holds, and six Sells issued by 30 analysts over the past three months.
Moreover, the average TSLA price target of $403.13 suggests less than 1% growth potential.
