- Tesla registrations fell 40% in Europe in July; BYD rose 225%.
- Aging models and delayed launches hurt Tesla amid rising competition.
- Chinese EVs, led by BYD, are rapidly capturing European market share.
Elon Musk’s automaker has not had a major refresh in its car lineup for years. Analysts cite the aging models and delayed launches, including the long-anticipated Cybertruck, as key reasons for declining sales. Tesla also faces reputational challenges linked to Musk’s public statements and political affiliations, which some experts believe have eroded consumer confidence.
Thomas Besson of Kepler Cheuvreux noted that Tesla management has been emphasizing AI, robotics, and autonomous driving over the cars themselves. “They talk about almost everything else but the car they’re selling at a slower pace now,” Besson said, underscoring the pressure on Tesla’s core automotive business.
BYD Rides the Surge of Chinese EVs in Europe
Chinese manufacturers, led by BYD, are aggressively expanding into Europe, launching competitively priced models and opening new showrooms across the continent. BYD’s growth exemplifies a broader trend: Chinese brands captured a record market share of more than 5% in the first half of 2025, according to JATO Dynamics.
Tesla is not alone in feeling the competitive squeeze. Other automakers, including Stellantis, Hyundai, Toyota, and Suzuki, also posted year-on-year declines in European registrations in July. Conversely, Volkswagen, BMW, and Renault managed to increase their new registrations, showing that success is still possible with refreshed models and strategic pricing.
Also Read: Tesla Pushes Limits Again — Illegal Robotaxi Rollout Hits San Francisco Streets
Looking Ahead
Tesla aims to revitalize its European sales with a more affordable electric vehicle planned for volume production in the second half of 2025. However, with BYD and other Chinese players rapidly expanding, Tesla will need more than hype around AI and autonomy to regain market share. The European EV landscape is shifting, and only automakers with updated products, competitive pricing, and strong brand perception will thrive.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
