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Tesla sales slump in Europe due to Chinese BYD

By Alimat Aliyeva

Tesla’s car sales in Europe took a sharp hit in July, marking the seventh consecutive month of decline for the American automaker. Meanwhile, Chinese rival BYD recorded impressive growth, highlighting a shifting dynamic in the European electric vehicle market, Azernews reports.

According to the European Automobile Manufacturers Association (ACEA), only 8,837 new Tesla vehicles were registered in July — a 40% drop compared to the same month last year. In stark contrast, BYD registered 13,503 new cars, an astonishing 225% year-on-year increase. Notably, Tesla’s sales slump occurred despite an overall rise in electric vehicle sales across Europe, underscoring deeper challenges for the company.

Tesla is facing mounting difficulties in Europe, including fierce competition, pricing pressures, and reputational damage linked to Elon Musk’s controversial statements and his ties with the Trump administration. Globally, Tesla is also navigating turbulent times: second-quarter revenue from car sales declined, and Musk warned investors of “several difficult quarters” ahead.

One of Tesla’s major issues is the lack of substantial updates to its model lineup. The company has announced plans for a more affordable electric vehicle, targeting mass production in the second half of 2025 — a move many investors hope will revive sales momentum.

Thomas Besson, head of automotive sector research at Kepler Cheuvreux, pointed out that Tesla’s leadership is trying to “convince investors that Tesla is more than just a car company,” emphasizing artificial intelligence, robotics, and autonomous driving technologies.

Meanwhile, Chinese manufacturers like BYD are aggressively expanding their presence in Europe, opening new showrooms and offering competitively priced models. According to JATO Dynamics, Chinese brands captured a record market share of over 5% in the first half of this year.

Tesla isn’t the only brand feeling the heat from Chinese competition. In July, other automakers such as Stellantis (owner of Jeep), South Korea’s Hyundai Group, and Japan’s Toyota and Suzuki also reported year-on-year declines in new car registrations in Europe. Conversely, Volkswagen, BMW, and Renault Group managed to grow their registrations during the month, benefiting from shifting market dynamics.

BYD isn’t just selling cars; it’s investing heavily in local production and charging infrastructure — factors that boost its appeal among European buyers and set a new standard for competition in the region.

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