May sales doubled! Tesla, Inc. (TSLA.US) continues to strengthen its momentum in Europe, breaking free from the trough and staging a "V-shaped rebound".

After experiencing a year-long sales slump, Tesla, Inc. (TSLA.US) is seeing a rapid acceleration in its recovery in the European market, which was further confirmed in the May data. The latest data from the European Automobile Manufacturers Association (ACEA) shows that in May, Tesla, Inc. registered 28,610 new vehicles across the EU, the UK, Iceland, Liechtenstein, Norway, and Switzerland, doubling year-on-year; in the EU market alone, 21,767 vehicles were sold, a 152.4% increase compared to the previous year. This marks the fourth consecutive month of year-on-year sales growth for Tesla, Inc. in the European market. Tesla, Inc.'s accelerated recovery poses a greater challenge to competitors like Volkswagen, who are also facing competition from Chinese manufacturers. Data shows that this momentum is mainly driven by strong growth in key markets such as Germany and the UK. In the first five months of this year, Tesla, Inc. has seen a cumulative year-on-year registration growth of 57%. The rebound follows a significant decline in sales in 2025, which created a "deep pit". In 2025, Tesla, Inc. registered 238,656 new vehicles in the European market, including the EU, the UK, Norway, and other countries, a 26.9% decrease compared to the previous year; within the EU alone, the registration volume dropped by 37.9%, with market share plummeting from 2.3% in 2024 to 1.4%. Last year, demand for Tesla, Inc. in most parts of Europe experienced a significant decline, partly due to CEO Elon Musk's support for far-right political parties in Europe and his relationship with former U.S. President Trump, which caused a backlash among consumers. Since 2025, tensions have continued between the U.S. and the EU due to President Trump's attempts to acquire Greenland and his repeated pressures on tariffs, creating strained trans-Atlantic relations. Due to Trump's close relationship with Tesla, Inc. CEO Elon Musk, Tesla, Inc. faced significant consumer resistance in the European market. Although Musk is no longer publicly associated with the Trump administration, the negative impact of his previous political stance continues to be felt. Furthermore, the lack of new models has had an impact. Since launching the Model Y in 2020, Tesla, Inc. has not released new mass-market models. The aging problem of its main models, the Model 3 and Model Y, has become increasingly prominent. By sticking to pure electric vehicles, Tesla, Inc. missed out on the growing plug-in hybrid market, while the FSD self-driving system has yet to be approved in Europe, making it difficult to leverage its technological advantages. However, the "V-shaped rebound" that began in February 2026 has reversed this downward trend. Despite a sharp 17% year-on-year drop in January registrations, marking the 13th consecutive month of decline, Tesla, Inc. saw registrations of 17,425 vehicles in 15 European regions in February, a 10% increase year-on-year, the first month-on-month increase since December 2024. This rebound momentum has continued to strengthen month by month, with registrations in April growing by 46.5% year-on-year in the European market, with the EU market seeing an increase of over 67%; May saw a doubling of growth. Analysts point out that this rebound is more influenced by external factors. In March 2026, a military conflict between the U.S. and Israel in Iran led to a sharp increase in gasoline prices in Europe, prompting consumers to accelerate their shift towards electric vehicles. In the first quarter of 2026, the market share of pure electric vehicles in Europe rose to 20.1%, a historic high compared to 13.2% in the same period in 2025. At the same time, Tesla, Inc. introduced a lower-priced standard version of the Model 3 in Europe at the end of 2025 (starting at 37,970 in Germany), with deliveries starting in early 2026, which opened up the market space for price-sensitive consumers to a certain extent. According to Ernst & Young, Tesla, Inc.'s Model Y SUV and Model 3 sedan were the best-selling electric models in Western Europe in May. The Elroq and Enyaq models under the Volkswagen Group brand ranked third and fourth, followed by the Volkswagen ID.3 and the T03 produced by Chinese manufacturer LEAPMOTOR. Chinese competitors remain formidable "chasers". In May, BYD Company Limited registered 26,017 vehicles in the EU, a 158.8% year-on-year increase, surpassing Tesla, Inc.'s monthly sales; with a cumulative registration of 99,578 vehicles in the first five months, also outperforming Tesla, Inc.'s 89,180 vehicles. BYD Company Limited's market share in the EU rose from 1.1% in the same period last year to 2.7% in May. Other Chinese brands are also performing impressively. Ernst & Young points out that "Chinese automakers are steadily expanding their market share in Europe, with high-value Chinese models becoming true bestsellers, especially in Southern European countries. "