Tesla's European sales growth and stock outlook

What happened: Tesla's stock fell 5.43% on April 2, 2026, after first-quarter vehicle deliveries missed estimates, totaling 358,023 vehicles. Despite this, Tesla's European sales grew for the first time in a year, driven by a 128% increase in Model 3 sales. Meanwhile, Tesla's energy generation and storage segment grew 27% in 2025, offsetting a double-digit decline in auto revenue. China-made electric vehicle sales also continued to grow.

Market impact: The miss in delivery estimates led to a sell-off in Tesla's stock, impacting investors and potentially influencing the broader EV sector. The growth in Europe and China, however, signals a recovery in foreign sales, which could benefit Tesla's international competitors like Volkswagen and General Motors.

What to watch next: Tesla's Q1 2026 earnings report, scheduled for late April, will provide further insight into the company's financial health and growth prospects. Additionally, the upcoming release of Tesla's new Model Y in Europe and the expansion of its Supercharger network will be key catalysts for monitoring Tesla's sales trajectory and stock performance.