London, Aug 29 (UNI) Auto maker Tesla reported a drop in its sales 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 percent fell 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, reports CNN.
Meanwhile, BYD, the burgeoning, ultra-cheap Chinese electric and plug-in hybrid carmaker, continues to put its stamp on Europe.
Its sales jumped 206.4 pc in July against 2024 figures. The 9,698 models BYD sold in July means it is now outselling Tesla.
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.
Sales of Chinese-branded cars are soaring across Europe. BYD in particular has increased its foothold, despite EV imports to the EU facing 27 pc 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
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 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 owing to a reduction in incentives to switch to EVs, concerns over battery life and a lack of charging infrastructure.
European buyers are showing a preference for hybrid electric cars, which control more than one-third of Europe’s new car market.
