Electric vehicle (EV) maker Tesla (TSLA) saw its auto sales rebound in Europe, with France and Denmark reporting their first rise of 2025 and Norway and Spain continuing to show resilience. The growth was spurred by the launch of revamped Model Y, which began selling in Europe in June. This has helped stabilize sales after a sluggish start to the year.
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Despite the improvement, Tesla faces mounting headwinds from rising EV competition, regulatory changes, and consumer backlash from CEO Elon Musk’s political engagements. Analysts caution that while the recent sales rebound is encouraging, Tesla needs to launch new models to win back customer loyalty, as its aging and limited EV lineup may not be enough to offset long-term pressures on its market share.
Tesla’s France and Denmark Sales Jump
There was good news for Tesla in Europe, as the company saw its EV sales rise in several European markets. In Denmark, particularly, Tesla’s sales jumped 20.5% in September, marking the strongest performance across the region. In France, deliveries grew by 2.74%, the first monthly growth recorded in 2025. The growth reflects robust demand for the updated Model Y, a model that continues to dominate Tesla’s European lineup.
Meanwhile, in Norway, sales climbed 14.7%, with the Model Y and Model 3 retaining the top two spots in the country’s overall auto rankings. In Spain, sales rose by 3.4%, backed by a 60% jump in new Model Y registrations.
However, Tesla continued to report declines in Sweden, which remained its worst-performing market in Europe in the first eight months of the year. The EV giant’s registrations declined 64% year-over-year to 1,726 autos in September. However, that figure was steeper than the 210 autos sold in August.
While Tesla’s sales rebound in parts of Europe is a welcome sign, the company continues to grapple with challenges. Chinese manufacturers such as BYD (BYDDF) and Nio (NIO) are rapidly expanding in Europe, while Volkswagen (VWAGY), Stellantis (STLA), and Volvo (VLVLY) continue to roll out new EVs at competitive price points.
Is Tesla a Good Stock to Buy Right Now?
Analysts prefer to remain sidelined on Tesla stock due to the ongoing challenges. On TipRanks, TSLA stock has a Hold consensus rating based on 15 Buys, 12 Holds, and eight Sell ratings. The average Tesla price target of $346.57 implies 22.1% downside potential from current levels. Year-to-date, TSLA stock has gained more than 10%.
