Tesla EU Sales Recovery Gains Steam in May

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This article first appeared on GuruFocus.

Tesla Inc. (TSLA, Financials) saw vehicle registrations rise in several European markets in May, giving investors another sign that demand may be improving in the region.

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France showed the biggest rebound, with registrations rising 655% from a year earlier to 5,446 vehicles. Norway also improved, with registrations up 29% to 3,345 vehicles. In Europe, registrations are commonly used as a close measure of vehicle sales.

The May numbers come after a weaker period for Tesla in the region, where competition from Chinese and European electric-vehicle makers has increased. The rebound suggests Tesla is still drawing buyers, even as the market becomes more crowded.

For investors, the question is whether this is the start of a steadier recovery or just a strong month. June registration data, pricing moves and broader delivery trends will help show whether Tesla can keep the momentum going.