Tesla’s European sales have recovered as rising fuel prices outweigh consumers’ dislike for CEO Elon Musk.
The US carmaker was overtaken by BYD last year as the world’s biggest EV manufacturer. Musk’s closeness to the Trump administration, deeply unpopular in Europe, was a significant factor: An effigy of Musk was hung upside down in Milan.
But oil price increases caused by the Iran war have driven up EV sales in Europe, and Tesla has benefited. Germany saw a 300% rise in sales in May, and Europe-and-UK-wide sales were up 57% year-on-year in the first five months of 2026.
The growing European demand offset the firm’s weak performance in the US, driven by the end of EV tax credits and weakened anti-emission regulations.