Tesla’s Europe problem just got even worse
Tesla electric cars are stationed in a storage area in the Zeebrugge port
By Ryan Hogg, CNN
London (CNN) — Tesla sales plunged again in Europe in July as car buyers continued their migration to Chinese rival BYD.
Elon Musk’s carmaker sold 6,600 models in the EU in July, a 42.4% fall from the same month last year, according to data from the European Automobile Manufacturers’ Association (ACEA). In the first seven months of 2025, Tesla sold around 77,000 cars in the EU, down from 137,000 in the same period in 2024.
Meanwhile, BYD, the burgeoning, ultra-cheap Chinese electric and plug-in hybrid carmaker, continues to put its stamp on Europe. Sales jumped 206.4% in July against 2024 figures. The 9,698 models BYD sold in July means it is now outselling Tesla.
The plunge – just the latest in a string of sales drops for Musk’s once-hot EV maker – underscores the turnabout in Tesla’s fortunes. Musk’s foray into politics didn’t just anger American liberals; his support of far-right parties in Germany and the UK also prompted protests outside Europe. And in Europe and China, Tesla has faced competition from lower-priced offerings from BYD, competition it doesn’t have to worry about in the US market.
Wider analysis that includes the UK and countries from the European Free Trade Association, like Norway, Denmark and Sweden, shows a similar sales drop for Tesla (TSLA) alongside a 225% increase for BYD in July.
Through all of 2025, Tesla has still outsold BYD by just under 35,000 models across the EU, the UK and the EFTA.
BYD leapfrogs Tesla
Sales of Chinese-branded cars are soaring across Europe. BYD in particular has increased its foothold, despite EV imports to the EU facing 27% tariffs following an anti-subsidy investigation by the bloc last year.
BYD still holds a price advantage over rivals including Tesla. Meanwhile, its technological advancements are also helping it pull ahead of competitors.
The group revealed a breakthrough to its battery charging technology in March that it said added 250 miles of range in five minutes, outpacing Tesla’s 200 miles in 15 minutes. BYD’s “God’s Eye,” a rival to Tesla’s full-self driving technology, was launched at no extra cost for most of its cars in February.
BYD also holds an advantage over Tesla in its diverse offering of EVs and hybrid vehicles, whereas Tesla only produces EVs. This has helped shield BYD from shifting consumer preferences in Europe.
Research firm Jato Dynamics first reported that BYD had overtaken Tesla’s European sales in April.
Tesla’s struggles
Tesla is now one of the worst-selling car groups across Europe, ahead of only Honda (HND) and Mitsubishi. The company’s struggles on the continent reflect economic, structural and even political shifts that are changing car buyers’ preferences.
Electric car sales growth has slowed across Europe in recent years. A reduction in incentives to switch to EVs, concerns over battery life and a lack of charging infrastructure have been blamed in surveys for slower-than-hoped uptake.
The current 15.6% market share that battery-electric vehicles hold in the EU is “still far from where it needs to be at this point in the transition,” the ACEA said.
European buyers are showing a preference for hybrid electric cars, which control more than one-third of Europe’s new car market.
Musk’s image has taken on a new relevance in Europe in recent years, much in the way it has in the United States.
Following his financing of Donald Trump’s successful presidential campaign, Musk turned his attentions to European politics. Musk publicly backed Germany’s far-right AfD party in the country’s February elections and spoke remotely at the party’s campaign launch.
He has also shown extensive support for the UK’s far-right reform party and advocated for the prison release of right-wing agitator Tommy Robinson, who was jailed for 18 months last October after admitting to being in contempt of court. Robinson was released on bail in August.
Sparse industry surveys have indicated falling consumer sentiment towards Tesla owing to Musk’s behavior. A January survey by Electrifying.com showed 60% of respondents were actively put off buying a Tesla owing to Musk’s behavior.
More than 70% of Brits and Germans held an unfavorable view of the Tesla CEO in January in the wake of Musk’s political interventions.
CNN has reached out to Tesla for comment.
The-CNN-Wire
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