Tesla TSLA shares slipped toward $364 Tuesday as fresh August registration data delivered a mixed verdict on the electric-vehicle maker’s European comeback. Sharp rebounds in France and Denmark were offset by steep declines in Norway and Sweden, leaving investors waiting for larger markets including Germany and the U.K. to determine whether Tesla is mounting a sustainable regional recovery or merely benefiting from uneven comparisons.

Tesla registrations surged 279% year over year in France and 104% in Denmark during August. But registrations plunged 79% in Norway and 41% in Sweden, extending a pattern of wildly different results across individual European markets. Data from Germany and the U.K., two of Europe’s largest auto markets, is expected later this week.

The split matters because Europe has become an important test of Tesla’s ability to revive its core automotive business amid intensifying competition. The company endured two consecutive years of declining regional sales before registrations began showing signs of recovery in 2026. Higher fuel prices and EV incentives have helped demand, but easier year-over-year comparisons may also be exaggerating some of the percentage gains.

Tesla’s broader vehicle business has already regained considerable momentum. The company delivered a record 480,126 vehicles in the second quarter, up sharply from 358,023 in Q1, with Model 3 and Model Y accounting for 467,762 deliveries.

That rebound raises the stakes for the European numbers. Investors need evidence that stronger global deliveries are being supported by durable underlying demand rather than discounts, incentives or strength concentrated in only a handful of markets.

Germany and U.K. registration figures are the immediate catalyst. Broad gains there would strengthen the argument that Tesla’s European recovery is becoming more widespread, while another sharp divergence would keep questions around regional demand alive.

Beyond Europe, the next major test will be Tesla’s third-quarter delivery report. Investors should watch whether deliveries can remain near Q2’s record level, particularly for the Model 3 and Model Y. Tesla’s expanding Robotaxi business and Cybercab production provide longer-term upside, but near-term sentiment still depends heavily on whether its enormous automotive operation can sustain volume growth without sacrificing profitability.