Tesla Inc (NASDAQ: TSLA) has struggled to show strong demand for its electric vehicles in many parts of the world over the last year. In the United States, the company has been hurt by the expiration of the Federal EV Tax Credit. In other parts of the world, brand damage and rising competition could be working against Tesla. The EV giant is now sharing some good news regarding February sales.
Tesla Sales Rise In Europe For February
After 13 months of declining sales in Europe, a new report shows Tesla demand was up in the region for the month of February.
Data covering the European Union, the United Kingdom and the European Free Trade Association countries shows a 29.1% year-over-year increase for Tesla in February, as reported by InsideEVs.
The data highlights registrations in the region, which are generally considered measurable sales for the month. Tesla had 13,740 vehicles registered in the region for the month.
For the combined months of January and February, Tesla vehicle registrations in Europe now total 20,941 units, up 16.7% year-over-year.
Not All Good News for Tesla
Ending a 13-month losing streak is a major win for Tesla and it comes ahead of the key first-quarter vehicle delivery data. While Tesla has good news, the report also comes with some negative news.
Tesla's 29.1% year-over-year increase for the month of February was significantly below Chinese rival BYD Co (OTC: BYDDY)(OTC: BYDDF).
BYD sold 15,438 electric vehicles in February for the European region, up 185.3% year-over-year. Through the first two months of 2026, BYD's sales in Europe totaled 29,291 units, up 179.2% year-over-year.
The sales figure for BYD includes both battery-powered electric vehicles and plug-in hybrids, making the comparison less direct to Tesla.
BYD has been aggressive in expansion in Europe, and the efforts have been paying off over the last two years with the Chinese giant taking market share from Tesla and others thanks to its expansion and more competitive pricing.
A maker of battery-electric vehicles (BEVs) and plug-in hybrids, BYD is also well positioned to capture the continued growth of BEVs and benefit from strong growth in hybrids, which ranked as the bestselling type of car in Europe in February.
The other bad news for Tesla is that this is only a rebound in Europe. Reports point to year-over-year declines for Tesla in other parts of the world, including North America.
Years ago, a report on a rebound in EV demand in a key geographic region would have sent Tesla stock much higher and been cause for celebration. The latest data from Europe acts as good news with a catch, as the report shows Tesla beating its own past poor numbers, but failing to keep up with BYD.
The first quarter is nearly over, and last year, Tesla reported its first-quarter delivery figures on April 2, 2025. Last year's vehicle deliveries of 336,681 for the first quarter were down from 386,810 year-over-year.
Another year-over-year decline in deliveries could put pressure on Tesla stock and the company, with analysts and investors already paying closer attention to non-vehicle sales growth items like FSD and the Optimus Bot.
Tesla Stock Price Action
Tesla stock is up 1% to $384.49 on Tuesday versus a 52-week trading range of $214.25 to $498.82. Tesla stock is down 12.4% year-to-date in 2026.