Last year, many of the headlines about Tesla coming out of Europe weren’t positive.
The company was losing market share in a number of European countries where it had traditionally performed well, as the influx of cheaper Chinese alternatives and CEO Elon Musk‘s foray into politics eroded his personal brand, eating into the company’s sales in the region.
Fast forward to late June 2026, and Tesla has officially turned its fortunes around in the region, and the headlines from Europe look much more positive for the American electric vehicle maker.
More than 50% of Tesla’s revenue in 2025 came from the U.S., according to data compiled by Bull Fincher. China accounted for 22%, and the rest is attributed to “other regions,” of which Europe is the most significant.
Tesla is on the road to recovery in Europe
Tesla has pulled out all the stops to turn its European sales around, including offering new, cheaper versions of the Model 3 and Model Y. After a full year of declines in 2025, the strategy appears to be paying off in 2026.
In January, Tesla sales in France reportedly declined 42% year over year. They were up in 655% in May, Reuters reported, citing AECA data. Norway, long one of the strongest EV markets with a large Tesla customer base, saw sales jump nearly 30%.
Tesla’s May European resurgence
- France – sales +655% to 5,446
- Norway – sales +29% to 3,345
- Denmark – sales +136% to 1,750
- Spain – sales +113% to 1,690
- Sweden – sales +71% to 858 Source: Reuters
Overall, electrified vehicle registrations, which include battery-electric, plug-in hybrid and hybrid models, rose about 21% in Europe and made up more than two-thirds of the region’s total registrations in April, according to the ACEA.
Battery-electric cars accounted for 19.7% of the EU market through April 2026, a 15% increase from the year prior, the ACEA says. The EU registered nearly 747,000 new BEVs through the first four months of the year, driven by strong growth in Italy, France and Germany.
Britain and Germany, the two largest car markets in the region, are scheduled to release their registration info later this week.
Improved sales aren’t the only thing going right for Tesla in Europe. The company’s plans for Full-Self Driving (Supervised) expansion are also moving forward.
Estonia is one of the countries where Tesla FSD was approved.
Photo by JOSEP LAGO on Getty Images
Which European countries have approved Tesla FSD?
This past weekend, Tesla had some good news for its fans in the small European country of Estonia: Tesla FSD has been approved.
Estonia, which is sandwiched between Latvia to the south and the Gulf of Finland to the north, is now the third European country to authorize use of the driver assistance tool after its Transpordiamet (Transport Administration) granted the tech approval by recognizing the same type of certification issued by the Netherlands, its fellow European Union member.
According to Teslarati, along with their approval, Estonian officials emphasized that FSD (Supervised) is classified as a Level 2 autonomy system, meaning drivers should maintain full attention, keep their hands on the wheel, and be ready to intervene.
Estonia is the third European country to approve the use of the tech, after Lithuania also quickly approved FSD in mid-May.
As soon as FSD was approved in the Netherlands in April, that set the stage for the company and the Netherlands to petition the EU to make the technology legal across all member states.
A month ago, EU members heard from Dutch officials about their decision to approve FSD’s use in their country and why the rest of the EU should do the same. For FSD to be approved, committee members representing 55% of member states and 65% of their populations must vote in favor of the measure.
Tesla FSD proved popular in the Netherlands, with Tesla owners surpassing 10 million kilometers (6.2 million miles) driven using the system less than a month after its approval.