BYD now outsells Tesla in Europe with 13,503 registrations in July compared to Tesla's 8,837 units. The Chinese automaker's 225% surge in sales comes as Tesla posted its seventh consecutive month of decline, down 40% year-on-year.
The brand also secured a 1.1% market share in Europe in July - overtaking Tesla's 0.7%.
Market gap closing
The Elon Musk-led EV maker's market share in Europe for the January-July period was 1.2% - down from 2.1% in the previous year, while BYD's market share tripled to 9% last year. up from 0.3% in 2024.
While Tesla works through what Musk warned would be "a few rough quarters," the company continues its European expansion strategy.
"July was a terrible month for Tesla for European vehicle registrations. Its brand has been tarnished by Elon Musk's political involvement and outspokenness, as well as growing competition"," AJ Bell analyst Dan Coatsworth said.
Yet for Chinese cars entering the market, their pricing strategy and showroom expansion across Europe have helped them gain a strong footprint almost overnight.
Over January to July, there were 84,416 new BYD registrations in the EU, up 290% compared to the same period last year.
ACEA reported that in the first seven months of 2025, 1.011 million new battery-electric cars were registered, accounting for 15.6% of the EU market share.
Challenges for Musk
Kepler Cheuvreux research head Thomas Besson said Tesla's positioning challenge amd management has been trying to "convince investors that Tesla is not really a car company" by talking about AI, robotics and autonomy.
Tesla's model lineup remains largely unchanged, though the company plans to deliver a cheaper mass-market EV by late 2025.
“They are putting their faith in China's electric vehicle challenger brand, with affordability a key factor behind the choice of manufacturer,” Coatsworth said.
