Tesla TSLA is seeing continued signs of a recovery in its European business, with registrations surging across key Northern European markets in October.
Registrations of new Tesla vehicles rose 248% year over year in Sweden, 131% in Norway and 34% in Denmark, according to data cited by Reuters from local automotive authorities and industry platforms.
The latest figures mark a sharp improvement from September, when registrations in Norway and Denmark increased by just 2.2% and 2.9%, respectively.
However, the large October percentage gains were also helped by comparisons with weaker sales a year earlier.
Tesla shares were up close to 1% in overnight trading.
Higher fuel prices support EV demand
The latest rebound comes as global energy markets remain unsettled amid the conflict between the US and Iran and disruptions to oil supplies through the Strait of Hormuz.
Rising crude prices have pushed fuel costs higher, potentially making electric vehicles more attractive to consumers looking to reduce their dependence on petrol and diesel.
Higher fuel prices are among several factors supporting Tesla’s European recovery, alongside government incentives and growing interest in electric vehicles.
The company has also benefited from easier year-over-year comparisons after a difficult period for sales.
Competition remains intense, particularly from Chinese manufacturers such as BYD, which has expanded its presence across Europe.
Tesla’s ability to sustain the latest momentum will become clearer once registration figures from Germany and the UK are released.
Registration figures from the UK and Germany, Europe’s two largest car markets, are expected later this week.
Musk expects significant growth ahead
The improved registration numbers add to signs that Tesla’s automotive business could be turning a corner after two consecutive years of declining annual sales.
The company delivered 486,532 vehicles in the third quarter, while reporting its largest passenger-vehicle order backlog in four years. On its earnings call, CEO Elon Musk said demand was growing faster than the company could produce vehicles.
“Demand is growing rapidly for our vehicles. It’s exceeding our production by a significant margin,” Musk told analysts.
He added that after several years of relatively flat performance, Tesla was now heading towards “a lot of fun and significant growth.”
Tesla’s net income nevertheless fell 43% in the third quarter as the company continued to invest heavily in its future businesses.
Tesla sets ambitious production target
Musk has also outlined plans to expand annual vehicle production to 5 million units by 2030. That would represent more than double Tesla’s current manufacturing capacity of around 2.4 million vehicles annually.
Tesla’s annual deliveries fell for the first time in 2024 and declined again in 2025, allowing China’s BYD to overtake it as the world’s largest electric vehicle seller.
A strong final quarter, supported by improving European demand, could help Tesla return to annual sales growth in 2026.
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