Tesla’s presence in the European electric vehicle market weakened further in July, with sales declining for the seventh consecutive month.
According to new data released by the European Automobile Manufacturers Association (ACEA), Tesla recorded a 40% year-on-year drop in new registrations, while Chinese rival BYD achieved a sharp increase.
The figures reflect growing competition in Europe’s electric vehicle segment, where Chinese carmakers are steadily expanding their market share and offering vehicles at competitive prices.
Tesla registrations fall, BYD climbs rapidly
Tesla registered 8,837 new vehicles across Europe in July, representing a steep decline compared with the same period in 2024.
The ACEA data showed that this slump came despite overall growth in the region’s battery electric vehicle sales.
At the same time, BYD reported 13,503 new car registrations in Europe during July, marking a 225% annual increase.
The Chinese manufacturer has been expanding aggressively across the continent, opening showrooms and launching models in several key markets.
This expansion has allowed BYD to rapidly capture more customers, making it a strong challenger in Europe’s growing electric vehicle industry.
Competitive pressures reshape Europe’s EV market
Tesla’s fall in sales comes as the automaker faces several challenges.
These include a lack of major refreshes to its vehicle line-up and increasing concerns about the brand’s reputation linked to Elon Musk’s outspoken presence and political associations in the US.
The company has acknowledged the need to diversify its offerings, with plans to introduce a more affordable electric vehicle.
Tesla has said volume production for this model is scheduled for the second half of 2025.
Analysts have noted that new launches will be crucial for Tesla, as its current vehicle line-up is ageing compared to competitors, and models such as the Cybertruck have not delivered the expected results.
Meanwhile, Chinese brands are scaling their presence at speed.
Data from JATO Dynamics revealed that Chinese automakers secured more than 5% of the European market share in the first half of 2024, a record high.
BYD has been a leading contributor to this surge, but other Chinese manufacturers are also moving quickly to introduce competitive vehicles and strengthen their foothold in the region.
Broader auto market impact
The competitive pressure from China is not limited to Tesla.
Other manufacturers, including Stellantis (owner of Jeep), South Korea’s Hyundai Group, and Japanese carmakers Toyota and Suzuki, also posted year-on-year declines in July registrations.
In contrast, some European firms managed to record gains during the same month.
Volkswagen, BMW, and Renault Group all reported growth in new car registrations across Europe, showing resilience in the face of rising competition.
Globally, Tesla has also seen signs of strain.
The company’s automotive revenue fell in the second quarter of the year, and Elon Musk has indicated that the business may experience “a few rough quarters” ahead.
Tesla has increasingly highlighted its work in artificial intelligence, robotics, and autonomous driving, but analysts have warned that investors remain concerned about the company’s slowing car sales.
The data underscores how Europe’s electric vehicle sector is becoming one of the most competitive markets in the world.
With Chinese brands like BYD expanding rapidly, and established European automakers strengthening their own positions, Tesla faces mounting pressure to reverse its sales decline and adapt to the changing landscape.
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