Tesla (TSLA) Shares Dip Following 37% Decline in February UK Sales

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TLDR

  • In February, Tesla’s vehicle sales in the UK decreased by 37% to 2,422 units, contrasting with a 7.2% increase in the broader UK market.
  • European performance was varied: sales increased in France, Norway, and Spain, but declined in the Netherlands and Denmark.
  • Year-over-year, EU registrations fell by 17% in January.
  • Wall Street maintains a Hold rating on TSLA, with a mean price target of $399.25.
  • Despite setbacks with the robotaxi, a BofA analyst hails Tesla as the “current leader in consumer autonomy.”

Tesla experienced a significant decline in UK sales during February, contributing to an inconsistent outlook regarding its recovery in Europe. According to figures from the Society of Motor Manufacturers and Traders, the company sold 2,422 vehicles in the UK last month, a 37% decrease compared to the 3,852 units sold in the same period last year.

This decline occurred while overall new car sales in the UK grew by 7.2% to 90,100 units, marking the strongest February performance since 2004.

Tesla contested the reported figures. A company representative stated that monthly registration statistics do not precisely represent actual sales or orders, arguing that quarterly data provides a more accurate assessment due to the logistics of vehicle delivery from factories to the UK.

TSLA Stock Card

“Customer orders and reservations for January and February significantly surpass those from the same periods in 2025 and 2024, but these orders are currently pending as we have not yet registered and delivered the vehicles to customers,” the spokesperson explained.

On Wednesday, transport research firm New Automotive released distinct data indicating Tesla’s UK sales fell to approximately 2,208 vehicles in February. The discrepancy in numbers arises from the different data sources and methodologies employed by the two organizations.

Uneven Performance Across Europe

The situation across the wider European market is inconsistent. Data for February reveals that Tesla registrations increased by 55% in France, 32% in Norway, and 74% in Spain. Conversely, they decreased by 45% in the Netherlands and 18% in Denmark.

During January, Tesla saw a 17% year-over-year decline in EU registrations.

Meanwhile, BYD reported an 83% surge in UK sales in February, according to SMMT data, although its total volume still trails Tesla. Data from New Automotive also shows BYD up by 40%, remaining behind Tesla in overall unit numbers.

BYD is facing its own set of challenges. The company’s global vehicle sales plummeted 41% in February, representing the sixth consecutive month of decline. Additionally, sales of its new energy vehicles fell by 9.5% compared to the previous month.

Following the release of this data, TSLA shares experienced a slight dip during early trading on Thursday.

Focus on Cybertruck and Robotaxi

Sales of the Cybertruck fell by 28% in 2025. The recently introduced “most affordable” version of the Cybertruck is priced significantly higher than the amount CEO Elon Musk originally pledged back in 2019.

Wall Street’s Perspective

Alexander Perry, an analyst at BofA, described Tesla as the “current leader in consumer autonomy.” He highlighted the company’s robotaxi goals as a possible growth driver, despite recent reports indicating obstacles in that endeavor.

The consensus rating on Wall Street for TSLA is Hold, derived from 13 Buy, 11 Hold, and 7 Sell ratings from 31 analysts surveyed over the last three months.

The average price target for TSLA is set at $399.25, suggesting a potential downside of approximately 2% from its current trading price.