Brussels: Tesla, the US electric vehicle manufacturer, experienced a significant upswing in its EU sales in March, with registrations climbing 101.9% compared to the previous year. This increase comes after a period of decline and is set against a backdrop of a growing electric car market throughout the European bloc.

According to Anadolu Agency, Tesla's sales surged to 36,868 units in March, a notable rise from the 18,256 units recorded in the same month last year. The company's market share in the EU also saw an increase, growing to 3.2% from the previous year's 1.8%.

Throughout the first quarter, Tesla's sales witnessed a 59.6% year-on-year increase, reaching 57,792 units, with its market share climbing to 2%. This strong performance in March marked a partial recovery for the company led by Elon Musk, which has been facing mounting pressure in Europe due to increasing competition, especially from China's BYD, and consumer backlash related to Musk's political stance.

Despite the positive monthly results, Tesla continues to face challenges in the first quarter as competitors gain ground in the rapidly expanding electric vehicle market. Data from the European Automobile Manufacturers' Association indicated that battery-electric car registrations in the EU rose by 48.9% year-on-year in March, totaling 234,532 units, with their share of total new car sales increasing to 20.3% from 15.3% the previous year.

Tesla's recovery in March follows a challenging 2025, during which its EU sales experienced a sharp decline and its market share weakened amidst aggressive expansion by Chinese brands in the region. BYD has emerged as a formidable competitor, benefiting from a wider model range and more affordable options as European consumers increasingly opt for electric vehicles.

Even with the March rebound, Tesla is striving to regain its footing in a market where competition is heating up and brand perception is increasingly influencing consumer choices.