Tesla Inc (NASDAQ:TSLA)’s sales in Europe fell sharply in July 2025, with new registrations declining 40% compared to the same month last year, according to data from the European Automobile Manufacturers Association (ACEA).
The drop marks the seventh consecutive month of falling sales for the US electric vehicle maker led by Elon Musk.
In contrast, Chinese automaker BYD Co (HKG:1211, LSE:0HKY, OTCQX:BYDDY) saw its European sales surge 225% during the same period, registering 13,503 new vehicles compared with Tesla’s 8,837.
BYD’s market share in Europe reached 1.2% in July, surpassing Tesla’s 0.8%, highlighting a notable shift in the competitive landscape.
From January through July, Tesla recorded 119,013 new registrations across the European Union, the European Free Trade Association (EFTA) countries, and the UK, representing a 33.6% decline compared to the same period in 2024.
Meanwhile, overall battery electric vehicle sales in Europe grew 33.6% year-on-year in July, with plug-in hybrids up 52.3% and hybrids rising 11.1%. This suggests that the broader market is expanding even as Tesla’s sales falter.
Tesla’s decline has been attributed to several factors, including an aging vehicle lineup, delayed model refreshes, growing competition from Chinese brands such as BYD, and reputational challenges tied to CEO Elon Musk.
BYD’s growth in Europe has been driven by aggressive expansion, competitive pricing, and increased showroom presence.
Shares of Tesla traded down 1.7% at $343 following the release of the data, down almost 15% so far this year.