Tesla saw its European fortunes fade even further in July, with new vehicle registrations plummeting 40% year-on-year to 8,837 units, figures from the European Automobile Manufacturers Association (ACEA) revealed on Thursday.
This marks the seventh consecutive monthly decline for Elon Musk’s electric car company and comes at a time when overall electric vehicle (EV) sales are climbing across Europe.
In stark contrast, China’s BYD continued its European blitz, registering 13,503 new vehicles last month—a surge of 225% compared to July 2024. BYD’s aggressive pricing and rapid expansion, with new showrooms popping up throughout the continent, have helped the brand carve out a growing slice of the increasingly competitive EV market.
While Tesla continues to wrestle with fierce competition, reputational setbacks tied to Musk’s public persona, and a stagnant product lineup, other old-guard carmakers are also feeling the squeeze. Companies like Stellantis, Hyundai, Toyota, and Suzuki all reported year-on-year declines in July registrations. Meanwhile, Volkswagen, BMW, and Renault bucked the trend with registration gains.
The U.S. automaker has warned of “a few rough quarters” ahead, with global second-quarter auto sales revenue already shrinking. Tesla’s lack of substantial model updates has weighed on its appeal, even as the company pledges to deliver a cheaper mass-market EV by late 2025.
Chinese manufactures, particularly BYD, have seized the opportunity, now holding a record-high 5% share of the European market. Their arrival is not only pressuring Tesla, but also forcing legacy automakers to accelerate their own electrification strategies as the EV race in Europe heats up.
