Updated version 1 - Tesla's registrations across Europe increased in September, with recovery momentum continuing.

Data from Spain and Denmark were added in paragraphs 2 and 3; charts were added in paragraphs 5 and 8; analyst comments were added in paragraphs 4 and 9 to 11.

Amir Orusov

Reuters, October 1 - In September, Tesla TSLA.O saw growth in new car registrations across several European markets, continuing the US electric vehicle maker's momentum in sales recovery in the region.

Data released Thursday by French automotive industry body PFA, Mobility Sweden, and industry group ANFAC show that, as an indicator of sales, Tesla registrations jumped 61.9% year-on-year in France (link), rose 38.4% in Sweden (link), and grew 24.8% in Spain (link).

Norwegian statistics agency OFV and Danish automotive data platform bilstatistik.dk stated that registrations increased by 2.2% in Norway (link) and by 2.9% in Denmark (link).

Rico Luman, Senior Economist at ING Research, said that due to high market saturation, the pure electric vehicle markets in Norway and Denmark have begun to slow.

Tesla’s sales rebound is attributed to the low base in the same period last year, rising fuel prices, government incentives, and growing consumer interest in electric vehicles.

This growth further confirms broader signs of recovery in Tesla's European business after two years of declining sales. According to data from the European Automobile Manufacturers Association (ACEA), from January to August, Tesla registrations in the EU, the UK, and the European Free Trade Association (EFTA) soared by 43.3%, outpacing the 38.8% growth rate of the overall pure electric vehicle market during the same period.

However, Matthias Schmidt, a European automotive market analyst at Schmidt Automotive, said that as peer competition intensifies, Tesla’s growth could slow by 2027 and become more in line with the overall market level.

Joern Buss, Partner at consultancy Arthur D. Little, noted that Tesla remains highly dependent on its Model 3 and Model Y, while consumers now have more competitively priced options from Chinese rivals as well as the latest models from Europe.

Buss added that European carmakers such as BMW BMWG.DE and Mercedes-Benz MBGn.DE are especially attractive to buyers who have strong loyalty to domestic brands.

New car registration data from the UK and Germany, the two largest automotive markets in Europe, will be released later this week and will further indicate whether Tesla’s recovery momentum in the region is strengthening.

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