BYD Overtakes Tesla in Europe as Sales Plummet 40% for US Automaker in July
BYD Overtakes Tesla in Europe as Sales Plummet 40% for US Automaker in July

New data from the European Automobile Manufacturers Association (ACEA) reveals a dramatic shift in the European electric vehicle market for July 2025. While overall battery-electric vehicle sales soared by 39.1%, market leader Tesla experienced a significant downturn, with sales plummeting by 40% compared to the previous year. This decline marks a concerning trend, bringing Tesla’s year-to-date sales in Europe down by 37%.
In stark contrast, Chinese automaker BYD saw an astounding 225% increase in its European sales for July, selling 13,503 units against Tesla’s 8,837. This surge propelled BYD to outsell Tesla on a monthly basis, a remarkable achievement given BYD’s relatively recent entry into the European passenger vehicle market.
The sales figures highlight a challenging environment for Tesla, as the company’s performance diverges sharply from the general growth in the EV sector. Industry observers are questioning Tesla’s strategy in the region, particularly in light of comments from CEO Elon Musk attributing poor performance to broader market weakness and the absence of Full Self-Driving capabilities in Europe – claims that appear to be contradicted by the robust growth of competitors like BYD.
If current trends persist, BYD is on track to potentially surpass Tesla’s total annual sales in Europe, signaling a significant realignment of market dominance in one of the world’s largest automotive markets.
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