Tesla Sales Rebound in Europe
Tesla is seeing a strong recovery in Europe after a tough 2025. February sales in Norway, a key EV market, jumped 75%, putting the company back in the top spot. Meanwhile, new vehicle registrations in Spain surged 74% year-on-year, suggesting price adjustments and product updates are paying off.
The February sales recovery follows a difficult period for Tesla in Europe, which saw its market share across the EU, Britain, and EFTA fall to just 0.8% in January 2026. This was a significant drop from 1.8% in 2025 and 2.9% in 2023, a year when its Model Y was the world's best-selling car. January's numbers were particularly stark, with registrations across the region declining 17% compared to the previous year, even as the overall battery-electric vehicle market grew by 13.9%. This slump was attributed to an aging model lineup and intensifying competition, which saw Tesla's European sales fall by 27% for the full year in 2025. The competitive landscape has shifted dramatically. In 2025, Volkswagen Group overtook Tesla to become the top seller of battery-electric vehicles in Europe, selling approximately 274,000 units to Tesla's 239,000. Chinese automaker BYD also emerged as a major force, more than doubling Tesla's sales volume in the region in January 2026 with 18,242 vehicles registered. The February rebound wasn't limited to Norway and Spain. Registrations in France saw a 55% year-on-year increase, and sales more than doubled in Portugal. However, the recovery was not universal, as sales fell in markets like the Netherlands (-45%), Denmark (-18%), and Italy (-7%) during the same period. Tesla's strategy to regain momentum has included significant price adjustments. In late 2025, the company launched new, more affordable "Standard" versions of its Model 3 and Model Y. In Germany, for example, the new Model 3 Standard was priced to undercut key rivals like the BYD Atto 3. The Model Y continues to be the primary driver of Tesla's sales volume. In Norway's February rebound, the Model Y accounted for 1,073 of the 1,210 Tesla vehicles registered, making up nearly 89% of the brand's total sales for the month. To further broaden its appeal, Tesla began offering a seven-seat configuration for the Model Y Long Range AWD in Europe in late February 2026. The option, which adds a third row, is part of an effort to stabilize sales after a year of declining deliveries in the region.
