Tesla's European Rebound Accelerates as French Registrations Surge 655%

June 1 (Reuters) – New registrations of Tesla (TSLA.O) cars rose across several European markets in May, continuing a recovery in the US electric vehicle maker's European sales.

Tesla registrations – a proxy for sales – increased year over year by 655% to 5 446 vehicles in France and 29% to 3 345 vehicles in Norway, according to figures from Norwegian compiler OFV and French car body PFA on Monday.

Growth also came from smaller markets, with a 136% rise from last year to 1 750 vehicles in Denmark, a 113% rise to 1 690 vehicles in Spain, a 349% rise to 1 463 vehicles in Portugal, and a 71% rise to 858 vehicles in Sweden, data from bilstatistik.dk, ANFAC, ACAP and Mobility Sweden showed.

Tesla's sales in Italy fell by 23.5% from last year to 654 vehicles, but rose more than 15% in the first five months of the year compared with 2025.

Registrations of electrified vehicles in Europe rose about 21% in April from the prior year, making up more than two-thirds of total registrations, driven by policy support, subsidies and higher fuel costs pushing buyers towards lower-emission cars, data from European auto lobby ACEA showed.

While Tesla's market share is eroding, its sales are being boosted by significant overall growth of the battery electric car market, particularly driven by accelerating adoption in Scandinavia and a catch-up effect in lagging markets such as Spain, said Rico Luman, senior economist at ING Research.

The Tesla data confirms an increasingly aggressive stance in the core EV market, supported by its pricing strategy and superior manufacturing capabilities, TP ICAP Midcap analyst Julien Thomas said.

"The Model Y, in particular, is capturing significant demand in the SUV segment, offering a good balance between price and range, at a time when price elasticity remains high," he added.

Britain and Germany – Europe's largest car markets – are set to report monthly registrations later in the week.

Tesla, the world's most valuable automaker by market capitalisation, lost almost half of its European market share in 2025 due to a combination of growing competition (especially from Chinese brands), its lack of new models and a reaction to chief executive Elon Musk's political stance.

Market sentiment

Investor reaction to Tesla's May registration data has been cautiously optimistic, with the figures confirming that the company's European recovery is gaining traction after a difficult 2025. The sharp rebound in France – a 655% increase to 5 446 vehicles – has been particularly eye-catching, though it should be noted that this comes from a very low base following last year's slump.

The broader picture shows a mixed but improving trend. Strong growth in Scandinavia (Norway up 29% to 3 345 vehicles) and southern Europe (Spain up 113%, Portugal up 349%) suggests that Tesla's pricing strategy and the popularity of the Model Y are resonating with price-sensitive buyers. The weakness in Italy, where sales fell 23.5% to 654 vehicles, remains a pocket of underperformance, though the 15% rise in the first five months of the year indicates that the trend may be turning.

Analysts are viewing the data as evidence that Tesla is fighting back effectively in a rapidly growing EV market. The comment from TP ICAP Midcap's Julien Thomas highlights the importance of the Model Y in the SUV segment, where buyers are balancing price against range at a time of high price elasticity. Meanwhile, ING's Rico Luman notes that Tesla's sales are benefiting from the overall expansion of the battery electric car market, even as the company's market share continues to erode.

The key missing pieces of the puzzle are the May registration figures from Britain and Germany, which are due later in the week. Those numbers will provide a much clearer picture of whether Tesla's recovery is broad-based or concentrated in smaller markets.

Key takeaway for investors: The May data suggests that Tesla's European sales are stabilising after the sharp decline in 2025, but the company has not yet regained its former dominance. Investors will be watching the upcoming UK and Germany figures closely, as well as monitoring whether Tesla can continue to defend its market share against aggressive competition from Chinese brands such as BYD. The stock remains highly sensitive to delivery volumes, and any sustained recovery in Europe would be a positive signal for the company's global growth trajectory. 

Disclaimer:
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