Tesla Registrations Drop In Europe In February Despite Rising EV Popularity, But Retail’s Optimistic

American EV giant Tesla, Inc.’s (TSLA) market share in Europe slumped in February while overall battery electric vehicle registrations rose.

According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla registrations dropped 40% in February and 42.6% year-to-date compared to corresponding periods last year.

Last month, the company held merely 1.8% of the total market across the European Union, the UK, and European Free Trade Association (EFTA) countries, compared to 2.8% in February 2023.

Battery electric vehicle registrations rose 26.1% last month to 164,646 units, owing to increased popularity in Germany, Belgium, and the Netherlands. Overall, vehicle registrations across fuel types dipped by 3.1%, owing to a drop in the number of petrol and diesel vehicles.

In February, Volkswagen continued to be the top-selling automaker in the geography with a 26.8% market share, followed by Chrysler parent Stellantis NV and Renault. However, Stellantis’ new vehicle registrations dropped 16.2% YoY last month.

E-Mobility Europe's Secretary General Chris Heron told Reuters that 2025 has started brightly for Europe's electric car market. “We are seeing the early impacts from manufacturer plans to meet the EU's scheduled CO2 limits,” Heron said, according to the report.

JATO Dynamics Global Analyst Felipe Munoz said on Monday that Tesla is now experiencing a period of “immense” change.

Tesla CEO Elon Musk’s “active role in politics,” increased competition, and the launch of the refreshed Model Y to replace the older version of the vehicle contributed to the drop in registrations, he opined.

Munoz added that it would be “interesting” to witness if demand rebounds once the refreshed Model Y hits markets across the region.

On Stocktwits, retail investor sentiment about Tesla rose from ‘bearish’ to ‘bullish’ territory (56/100) while message volume remained in the ‘high’ over the past 24 hours.

TSLA’s Sentiment Meter and Message Volume as of 7:55 a.m. ET on March 25, 2025 | Source: Stocktwits

Asset manager Ark Investment Management LLC’s Cathie Wood said in an interview with Bloomberg on Monday that she expects Tesla stock to touch $2,600 in five years, reiterating the firm’s outlook from June.  

Tesla shares closed 12% higher on Monday after President Trump said that not all the tariffs he has warned of will be imposed on April 2. According to a Reuters report, Trump said that automobile tariffs are coming soon. However, he did not provide a definite timeline.

Tesla stock has lost 26.6% this year but has gained over 60% over the past 12 months.

Read also: Urgent.ly Faces Nasdaq Non-Compliance Warning: Retail Watches Closely

For updates and corrections, email newsroom[at]stocktwits[dot]com.<