Tesla’s European car sales experienced a significant downturn in July, marking the seventh consecutive month of declines for the company. Data released by the European Automobile Manufacturers Association (ACEA) revealed that new registrations of Tesla vehicles totalled 8,837, a 40% year-on-year decrease. Meanwhile, Chinese electric vehicle manufacturer BYD saw a surge in registrations, recording 13,503 new registrations in July, a 225% annual increase.
Tesla’s struggles in Europe come even as overall sales of battery electric cars are on the rise across the continent. The Elon Musk-led automaker faces challenges including intense competition and brand reputation issues. Tesla has struggled globally, with auto sales revenue falling in the second quarter. Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, energy generation and storage systems worldwide. The company also operates a network of charging stations.
One factor contributing to Tesla’s difficulties is the lack of recent updates to its car line-up. The company is developing a more affordable electric car, with “volume production” planned for the second half of 2025, hoping to reinvigorate sales. However, competition from Chinese manufacturers like BYD, which are aggressively launching new models and expanding into Europe, is intensifying. BYD has been opening showrooms and offering competitively priced vehicles, gaining market share.
Other automakers, including Stellantis (Jeep), Hyundai Group, Toyota, and Suzuki, also saw declines in European new car registrations in July. In contrast, Volkswagen, BMW, and Renault Group recorded increases during the same period, highlighting the shifting dynamics of the European automotive market.
