Tesla's troubles in Europe intensify further
In a surprising turn of events, Chinese electric and hybrid car brand BYD has surpassed Tesla in sales within the European Union (EU). According to data provided by the European Automobile Manufacturers' Association (ACEA), BYD sold 9,698 models in July, marking a staggering 206.4% increase compared to the same month in 2024. This places BYD as a leading contender in the EU market, outselling Tesla, which sold 6,600 models, a 42.4% decrease from the same month in the previous year.
The success of BYD can be attributed to several factors. Firstly, BYD offers a diverse range of electric vehicles (EVs) and hybrid vehicles, while Tesla only produces EVs. Secondly, BYD's technological advancements have given it an edge over competitors. Their battery charging technology is capable of adding 250 miles of range in just five minutes, and they have developed a rival to Tesla's full-self driving technology.
BYD's leader in China is Wang Chuanfu, who serves as the CEO, Chairman, and President of the company. Stella Li is the Executive Vice President and CEO of BYD Americas and Europe, but she does not hold the overall leadership role.
Meanwhile, Tesla's sales slump in the EU seems to be influenced by a variety of factors. Sparse industry surveys have indicated falling consumer sentiment towards Tesla due to Elon Musk's behaviour. A January survey by Electrifying.com showed that 60% of respondents were actively put off buying a Tesla due to Musk's behaviour. Additionally, EV imports to the EU face 27% tariffs following an anti-subsidy investigation by the bloc last year.
The current 15.6% market share that battery-electric vehicles hold in the EU is "still far from where it needs to be at this point in the transition," according to the ACEA. However, European buyers are showing a preference for hybrid electric cars, which control more than one-third of Europe's new car market.
As Tesla continues to grapple with these challenges, BYD maintains its price advantage over rivals, including Tesla. The company's success in Europe against Tesla is a testament to its strategic approach and innovative technology.
CNN has reached out to Tesla for comment regarding their decreasing sales in the EU. Elon Musk, the CEO of Tesla, has shown extensive support for the UK's far-right reform party and Germany's far-right AfD party, which may also be impacting public perception of the brand. In January, more than 70% of Brits and Germans held an unfavorable view of Musk in the wake of his political interventions.
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. This places Tesla as one of the worst-selling car groups in Europe, ahead of only Honda and Mitsubishi. Research firm Jato Dynamics reported that BYD had overtaken Tesla's European sales in April.
As the electric vehicle market continues to evolve, it will be interesting to see how Tesla responds to this significant challenge from BYD. The EU market, in particular, is a crucial one for both companies, and the competition between them is heating up.
