Tesla faces seventh month of falling sales in Europe

August 28, 2025 (MLN): Sales of Tesla cars in Europe plunged in July, marking the company’s seventh consecutive month of declines, while Chinese rival BYD saw a sharp monthly surge, data released on Thursday showed.

New car registrations of Tesla vehicles totaled 8,837 in July, down 40% year-on-year, according to the European Automobile Manufacturers Association (ACEA).

BYD, meanwhile, recorded 13,503 new registrations in July, up 225% annually.

Tesla’s declines came even as overall sales of battery electric cars in Europe rose, ACEA data showed.

Elon Musk’s automaker faces a number of challenges in Europe, including intense competition and reputational damage to the brand from the billionaire’s incendiary rhetoric and relationship with the Trump administration.

Tesla has struggled globally in recent times.

The company’s auto sales revenue fell in the second quarter of the year, and Musk warned that the automaker “could have a few rough quarters” ahead.

One issue for Tesla is the lack of a major refresh of its car line-up.

The company said this year that it is working on a more affordable electric car with “volume production” planned for the second half of 2025, with investors hoping this will reinvigorate sales.

At the same time, U.S. automakers face strong competition from Chinese players, which are launching models aggressively and ramping up their push into Europe.

BYD has led the charge, opening showrooms across the continent and launching its cars at competitive prices over the last two years.

Chinese brands commanded a record market share of more than 5% in the first half of the year, according to data from JATO Dynamics released last month.

It is not only Tesla feeling the heat from Chinese competition.

Stellantis, owner of Jeep, along with South Korea’s Hyundai Group and Japan’s Toyota and Suzuki, all posted year-on-year declines in European new car registrations in July.

By contrast, Volkswagen, BMW, and Renault Group were among those that logged increases in new European car registrations across the month.

Copyright Mettis Link News