Tesla’s European sales plunged in July, marking the seventh consecutive month of declines, while Chinese rival BYD saw a 225% jump, according to ACEA data. Tesla registered 8,837 new cars, down 40% year-on-year, whereas BYD reached 13,503.
The decline comes despite overall growth in battery electric car sales across Europe. Tesla faces challenges including stiff competition, aging vehicle lineup, and reputational issues linked to Elon Musk. The company is planning a more affordable electric car with volume production in the second half of 2025 to boost sales.
Analysts note Tesla management emphasizes AI, robotics, and autonomy, but vehicle sales lag behind, with older models like the Cybertruck underperforming. Meanwhile, Chinese automakers, led by BYD, are aggressively entering Europe with competitive pricing and new showrooms.
Chinese brands captured over 5% of the European market in H1 2025, a record high. Other automakers, including Jeep (Stellantis), Hyundai, Toyota, and Suzuki, also saw year-on-year declines in July, while Volkswagen, BMW, and Renault posted gains.