Tesla’s sales in Europe have taken a sharp downturn, while Chinese rival BYD is surging ahead. According to The Guardian, Tesla sold just 8,837 cars in July across the EU, EFTA, and the UK. That’s a 40% drop compared to nearly 14,800 the year before. BYD, on the other hand, more than tripled its sales to 13,503, giving it a 1.2% market share compared to Tesla’s 0.8%.
This marks the seventh month in a row of falling sales for Tesla in Europe. Analysts suggest the decline is tied to its limited lineup, lack of new model launches, and growing consumer backlash linked to Elon Musk’s political views. Meanwhile, BYD has expanded quickly, offering a wider variety of models at lower price points that appeal to budget-conscious buyers.
The UK and Germany, two of Tesla’s key European markets, saw especially steep declines. In Britain, registrations dropped nearly 60% year-on-year, while in Germany sales fell by more than half. BYD managed to grow in both markets, gaining momentum with competitively priced electric vehicles.
Despite Tesla’s struggles, Europe’s electric vehicle market overall continues to grow. More than a million battery-electric cars have already been registered in the EU in 2025, making up around 15.6% of new sales. Plug-in hybrids are also holding steady, showing that Europe’s transition to greener transport is still gaining ground.
For Tesla, the trend is worrying. Without new models and with its image under increasing strain, its hold on Europe’s EV market looks weaker by the month. BYD’s rapid rise shows that affordability and variety are becoming just as important as brand recognition in the electric car race.
