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Tesla’s freefall in Europe continues as BYD overtakes it at stunning pace

Tesla's freefall in Europe continues as BYD overtakes it at stunning pace

Tesla’s sales freefall in Europe continues. The American automaker’s sales declined by 40% in July, while BYD’s increased by 225%.

The European Automobile Manufacturers Association (ACEA) released automotive sales numbers for July today, and it confirmed that battery-electric vehicle sales rose 39.1%, exceeding the growth rate of ICE vehicles.

Generally, rising EV sales would be suitable for an EV leader like Tesla, but the American automaker’s sales remain in freefall in Europe.

Tesla was down 40% in July, and it is now down 37% year-to-date in Europe:

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Manufacturer July 2025 Share July 2025 Units July 2024 Units July Change % YTD 2025 Share YTD 2025 Units YTD 2024 Units YTD Change %
Volkswagen Group 28.2 306,543 274,659 11.6 26.8 2,118,545 2,044,448 3.6
Volkswagen 11.5 124,464 109,327 13.8 11.0 872,817 825,709 5.7
Skoda 7.1 77,591 59,442 30.5 6.2 490,531 440,832 11.3
Audi 4.9 52,971 59,147 -10.4 4.8 381,095 404,240 -5.7
Cupra 2.2 24,199 16,662 45.2 2.2 177,241 129,571 36.8
Seat 1.7 18,564 22,092 -16.3 1.6 132,209 172,059 -23.2
Porsche 0.7 7,801 6,413 21.8 0.7 57,777 64,826 -10.9
Others (VW) 0.1 952 766 24.3 0.1 5,984 5,450 9.8
Stellantis 13.9 151,391 153,071 -1.1 16.4 1,192,746 1,298,490 -8.1
Peugeot 4.4 48,027 49,291 -2.6 5.2 411,792 394,985 4.3
Opel/Vauxhall 3.3 36,279 35,337 2.7 3.1 241,385 267,479 -9.8
Citroen 2.4 26,333 26,298 0.1 2.7 216,659 249,824 -13.3
Fiat 2.1 21,321 23,862 -10.7 2.1 172,692 200,084 -13.6
Jeep 1.0 10,422 10,479 -0.5 1.0 82,692 81,231 1.7
Alfa Romeo 0.4 4,317 3,197 35.0 0.4 38,127 28,487 34.0
DS 0.2 1,416 1,506 -5.9 0.2 11,952 12,608 -5.2
Lancia/Chrysler 0.1 905 2,843 -68.2 0.2 7,401 9,263 -20.3
Others (Stellantis) 0.1 549 501 9.6 0.1 5,846 3,875 50.9
Renault Group 9.6 104,194 95,784 8.6 8.7 812,116 767,674 5.8
Renault 4.6 49,559 48,285 2.6 5.6 443,682 411,762 7.8
Dacia 5.0 53,495 47,468 12.7 4.6 362,839 353,155 2.7
Alpine 0.1 140 39 261.3 0.1 595 294 102.3
Hyundai Group 8.5 91,918 93,934 -2.3 8.2 631,027 658,162 -4.1
Hyundai 4.5 45,347 46,362 -2.2 4.2 316,492 329,627 -4.0
Kia 3.9 42,671 46,390 -7.0 4.0 314,535 328,944 -4.2
Toyota Group 7.0 77,475 80,390 -3.6 7.0 556,611 559,524 -0.5
Toyota 6.6 71,376 74,172 -3.8 6.7 510,094 557,039 -0.5
Lexus 0.4 6,099 4,218 44.6 0.3 46,517 24,885 86.9
BMW Group 7.7 83,279 74,602 11.6 7.2 569,338 542,167 5.0
BMW 6.3 66,775 63,725 4.0 6.0 474,149 426,159 11.3
Mini 1.4 15,404 10,897 41.4 1.2 95,189 80,122 19.0
Mercedes-Benz 4.9 53,458 53,447 0.0 4.9 388,876 387,780 0.3
Ford 3.3 35,210 31,730 11.0 3.3 260,342 236,071 10.3
Volvo Cars 2.3 25,030 30,044 -16.7 2.5 195,966 225,003 -13.3
Nissan 1.9 23,882 25,002 -4.8 1.8 187,969 198,459 -5.3
SAIC Motor 2.1 23,316 20,769 12.3 2.2 176,415 149,729 17.8
Suzuki 1.0 10,242 11,934 -14.2 1.1 106,860 112,857 -5.3
Tesla 0.8 8,837 14,769 -40.2 1.2 113,019 179,338 -37.0
Mazda 0.8 8,772 10,795 -18.7 0.9 91,175 101,475 -10.2
BYD 1.2 13,503 4,151 225.3 1.0 84,416 21,612 290.6
Jaguar Land Rover Group 1.0 9,828 12,010 -18.2 1.2 82,332 95,161 -13.4
Land Rover 0.7 9,821 10,240 -4.1 1.0 79,252 85,950 -7.8
Jaguar 0.3 7 1,770 -99.6 0.2 3,080 28,211 -89.1
Honda 0.6 6,024 6,068 -0.7 0.5 3,314 3,777 -12.3
Mitsubishi 0.3 3,327 4,224 -21.3 0.4 31,221 40,491 -23.6

Meanwhile, BYD was up 225% and outsold Tesla by a wide margin, with 13,503 units sold versus Tesla’s 8,837.

BYD has been selling passenger vehicles in Europe for less than 3 years, and it is now already surpassing Tesla on a monthly basis.

At this pace, the Chinese automaker could even potentially outsell Tesla in Europe for the whole year.

Electrek’s Take

BEV sales are up 40% and Tesla’s are down 40%. This is a red flag if I have ever seen one.

It’s shocking to me that Tesla allowed this to happen in such a crucial electric vehicle market.

If I understand correctly, Tesla is not addressing the issue at all because CEO Elon Musk believes the reason Tesla is not performing well in Europe is that “everyone else is doing poorly in Europe” and that Tesla can’t launch its Full Self-Driving system in the market.

One of those points is a complete fabrication, as the data above highlights, and the other is total speculation in my opinion.

I’d be surprised if Tesla’s FSD launch in Europe has a significant impact on demand.

Meanwhile, Tesla is allowing its sales to free-fall in one of the world’s largest automotive markets – acting like it doesn’t know the real reason demand is abysmal: Elon Musk.

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