Tesla Inc. (NASDAQ:TSLA) saw a drop in new car sales in Europe even as overall vehicle sales in the region increased.
What Happened: Data released by the European Automobile Manufacturers Association (ACEA) showed that Tesla sales dropped by 28% in the region as Tesla's market share has dropped to 2% from 2.9% around the same time last year, Reuters reported on Thursday.
Sales for new BEV or Battery Electric Vehicles rose by 17.1% in the region as Electrified vehicles like BEVs, Hybrid Electric Vehicles, and Plug-In Hybrids accounted for over 59.2% of new vehicle registrations, the report said.
Elsewhere, registrations for Volkswagen AG were up 10.3% while Renault experienced a 13% surge. However, Stellantis NV (NYSE:STLA) experienced a 5.9% decline in sales. According to the data, Hybrid electric vehicles continue to dominate the region with over 35.5% of new registrations.
CEO Elon Musk also reiterated his commitment to the company at the earnings call on Tuesday, which inspired confidence among investors as Tesla stock experienced a 5% surge in after-hours trading.
Despite the decline in sales, experts are confident that Tesla will continue to grow, as investment bank Piper Sandler raised the price target on Tesla stock to $400, while Dan Ives raised it to $350.
According to Benzinga Edge stock Rankings, Tesla scores well across all metrics except Value. For more such insights, sign up for Benzinga Edge today!
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