Tesla’s electric vehicle market in Europe in June demonstrated a contrasting dynamic. While registrations in Norway - one of the historically strongest markets for a brand - fell by 43% year on year to 3,222 cars, other countries recorded strong growth. France more than doubled (+104.99%), Sweden by 56.3% and Denmark by 39% to 1,778 cars.

Analysts expect Tesla to report a second-quarter supply growth of around 5%, with Europe being the main driver. Rising fuel prices, owing to geopolitical tensions, are pushing European consumers to switch to electric vehicles. According to the Visible Alpha survey, Wall Street forecasts 402,780 vehicles in June-quarter, up 4.9% year on year and 12.5% compared to the first quarter.

Deutsche Bank expects the European region to grow by about 40% year on year. For comparison, China is expected to grow modestly by 3%, and North America is projected to decline by 21%. The US market weakness stems from the expiration in September of a $7,500 federal tax credit for electric vehicles, which continues to cool domestic demand.

To support sales, Tesla has introduced more affordable versions of the Model 3 and Model Y over the past year, which should help the company stay competitive.