The balance of power in Europe’s electric vehicle (EV) market is changing fast. In July 2025, Chinese automaker BYD outsold Tesla across Europe, highlighting a dramatic shift in consumer preferences and competitive dynamics.
According to new registration data, BYD sales in Europe soared by more than 225% year-on-year, reaching over 13,500 vehicles in July. Tesla, by contrast, sold fewer than 9,000 cars, a decline of roughly 40% compared with the same month last year. This marks Tesla’s seventh straight monthly drop in European sales, underscoring a steep downturn for the company that once dominated the EV conversation.
Tesla’s overall market share in Europe has now fallen to less than 1%, while BYD continues to gain traction with affordable, tech-heavy models that appeal to price-conscious buyers. Meanwhile, European EV demand remains strong: fully electric and plug-in hybrids accounted for nearly 60% of all new registrations in July, up from 51% a year ago.
Industry analysts say Tesla’s decline is the result of multiple factors: an aging lineup, slowing production of key models like the Model Y, and a growing backlash against CEO Elon Musk’s polarizing public persona. At the same time, BYD has aggressively expanded in Europe, combining competitive pricing with fast delivery and reliable battery technology.
The shift signals a new competitive landscape. Established European automakers like Volkswagen and Stellantis still hold significant ground, but BYD’s rise shows how quickly consumer loyalties can change in the fast-moving EV market. For Tesla, the pressure is mounting to refresh its lineup, rebuild trust, and rethink its global strategy.
Europe is now the latest battleground in the global EV race—and with BYD surging ahead, Tesla faces a critical moment in redefining its future.