Tesla’s European sales fell 40% in July, marking its seventh consecutive monthly decline.
BYD’s July sales surged 225%, outselling Tesla by nearly 5,000 units in the region.
Europe’s BEV market grew 39.1%, highlighting Tesla’s struggles amid sector-wide expansion.
Tesla’s new car registrations in Europe dropped 40% year-over-year in July 2025, falling to 8,837 units, according to data released by the European Automobile Manufacturers Association (ACEA). Meanwhile, China-based electric vehicle manufacturer BYD recorded 13,503 registrations or a 225% increase compared to July 2024.
EV sales across Europe rose 39.1% in July, outpacing the growth of internal combustion engine vehicles and highlighting Tesla’s struggles despite overall market expansion. Year-to-date, Tesla’s European sales have fallen 37%, while BYD’s deliveries have increased nearly 291% compared to the same period last year.
BYD, which entered the European market less than three years ago, continues to expand its presence through new model launches and showroom openings. In contrast, Tesla’s aging lineup and limited new product introductions have led to stagnating demand.
Market analysts note that Tesla has increasingly focused investor messaging on its artificial intelligence, robotics, and autonomous driving ambitions rather than its core automotive business. Tesla’s slower vehicle updates and underperformance of recent models, including the Cybertruck, have contributed to waning consumer interest.
European market data from JATO Dynamics shows that Chinese EV manufacturers have reached a combined 5% market share in the region during the first half of 2025, led in part by BYD’s rapid ascent.
Tesla has announced plans to launch a more affordable EV in the second half of 2025; however, it appears to be no more than a de-contented Model Y SUV.
In July, Volkswagen Group maintained its position as the market leader with a 28.2% share and year-over-year growth of 11.6%. Renault Group and BMW Group also posted increases, while brands such as Hyundai, Toyota, and Mercedes-Benz saw flat or declining results.
Source: New York Post
