Tesla recorded a 40% drop in its electric vehicle sales in Europe, while sales of cars from the Chinese company BYD tripled on the continent.
The data, released by the European Automobile Manufacturers Association (ACEA), marks the seventh consecutive month that Elon Musk’s company has reported sales declines, while enthusiasm for Chinese cars continues to grow.
While Tesla registered only 8,837 new cars in July 2025 in Europe compared to the same period last year, BYD reached 13,503 new registrations in the same month, an increase of 225% year-on-year.
According to ACEA, Tesla’s recent decline cannot be attributed to a broad sector downturn, as overall battery electric vehicle sales in Europe increased in July.
Thomas Bessen, head of automotive research at Kepler Cheuvreux, told CNBC’s Squawk Box Europe on Thursday (28) that Tesla’s management has been trying to “convince investors that Tesla isn’t really a car company.”
According to him, Tesla has focused on artificial intelligence, robotics, and autonomous technologies, giving room for the Chinese automaker to gain a larger market share.
BYD has succeeded in attracting European customers by opening showrooms and launching new models, while Tesla’s model lineup has been gathering dust. Investors hope Tesla will soon release some updated models to boost sales.
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