Tesla’s global sales rose 25% in the second quarter, offering a much-needed sign that Elon Musk’s electric car company may be starting to move past one of its toughest stretches, especially in Europe.
The company delivered more than 480,000 vehicles in the three months ending in late June, compared with just over 384,000 vehicles during the same period in 2025. For Tesla, delivery figures remain the clearest indicator of real sales performance.
Tesla does not publish regional delivery numbers, but Europe appears to have played a major role in this rebound. Data from the European Automobile Manufacturers’ Association showed that Tesla sales in Europe jumped 77% during the first five months of the year.
Several factors helped push the recovery forward. Demand for electric cars has improved as fuel prices remain high, while government incentives continue to support EV buyers. At the same time, the public backlash against Elon Musk’s political views, which had hurt the brand badly across Europe, appears to have eased.
Tesla’s European sales had dropped 38% last year, according to ACEA, after Musk publicly supported far-right political figures in Germany and the UK. His controversial role in President Donald Trump’s administration, where he led efforts to cut thousands of federal jobs, also added pressure on the brand.
Dan Ives, Global Head of Technology Research at Wedbush Securities, told CNN that Europe is now bouncing back after spending nearly a year under the weight of strong anti-Musk sentiment.
EV Tax Credits And Stronger Results
Tesla’s better-than-expected quarterly results suggest the company may finally be finding its way back after two straight years of annual sales declines. In the United States, the end of federal EV tax credits had made Tesla’s cars less attractive to some potential buyers.
Deutsche Bank analysts had expected Tesla to deliver around 416,000 vehicles for the quarter, with international markets doing most of the heavy lifting. Europe, in particular, was seen as the standout growth driver.
Morningstar senior equity analyst Seth Goldstein linked Tesla’s stronger performance to a growing market share in Europe. He also expects long-term EV demand to keep improving as electric cars become more competitive with gasoline-powered models and fast-charging networks expand across highways and major cities.
Chinese EV Rivals Are Closing In
Despite the rebound, Tesla is still under heavy pressure from Chinese EV makers. Last year, BYD overtook Tesla to become the world’s largest electric vehicle manufacturer.
In Europe, the pressure is even clearer. ACEA data shows that BYD sales jumped 159% between January and May, giving the Chinese brand a roughly 12% lead over Tesla in the region. That marks a sharp turnaround from last year, when BYD was still trailing Tesla even as the American brand struggled.
Tesla Wants More Than EV Sales
Tesla’s long-term ambitions go far beyond electric cars. The company is investing heavily in autonomous driving and artificial intelligence, and last summer it launched its Robotaxi service in a limited number of markets using vehicles equipped with full self-driving technology.
Tesla is also preparing to build humanoid robots after stopping production of the Model S and Model X, its two most expensive vehicles, to free up more factory space. Still, both the Robotaxi business and the humanoid robot project are moving more slowly than Tesla had hoped, and neither has reached full commercial scale yet.
