Tesla's stock (TSLA) rose approximately 3.5% on Monday, March 24, 2026, following the release of data showing the company's first monthly sales increase in Europe in over a year. According to the European Automobile Manufacturers’ Association (ACEA), Tesla's new-car registrations in Europe rose nearly 12% year-on-year in February, reaching 17,664 units. This marks a significant turnaround after a prolonged slump; the last monthly increase was in December 2024, and full-year 2025 European sales had fallen 27.8% to 235,322 units.
The sales recovery provided a boost to investor sentiment, with the stock gaining an additional 1.6% in early trading the following day, even as broader markets declined. The slump had been attributed to intense competition and backlash in Europe related to CEO Elon Musk's public political involvement.
Competition remains fierce, particularly from Chinese automaker BYD, which outsold Tesla in Europe in February with 17,954 registrations—nearly triple its year-ago figure. Both companies held a 1.8% market share for the month. Despite Tesla's rebound, European domestic brands like Volkswagen and Stellantis continue to dominate in overall volume.
Wall Street analysts maintain a cautious outlook on Tesla's core automotive business, with a consensus Hold rating and an average price target of $399.25. However, investor focus has increasingly shifted to Tesla's artificial intelligence initiatives. The company recently launched a robotaxi service in Austin, Texas, with plans for expansion, and is expected to unveil a new version of its Optimus humanoid robot.
Over the weekend, Musk announced plans for "Terafab," a semiconductor manufacturing joint venture with SpaceX and xAI, aimed at vertically integrating chip production to support Tesla's AI ambitions. This move has divided analysts; while some, like Ben Kallo of Baird, see it as a strategic positive (maintaining a Buy rating with a $548 target), others express concern over potentially massive capital expenditures exceeding $100 billion.
