TLDRs;
- Tesla’s European market share fell to 1.7% in 2025, while BYD achieved record-breaking growth despite tariffs.
- France, Sweden, Denmark, and the Netherlands all saw Tesla registrations plunge by 40–80% year-on-year.
- BYD overtook Tesla in European monthly sales for the first time in July 2025, signaling a major shift.
- Surveys show consumer backlash against Elon Musk’s political views is further hurting Tesla’s European sales.
Tesla’s grip on Europe’s electric vehicle (EV) market is loosening as new registration data reveals sharp declines across multiple countries.
In August, France recorded a 47.3% drop in Tesla registrations, while Sweden saw an even steeper fall of over 84%. Denmark fell 42%, the Netherlands 50%, and Italy 4.4% year-on-year.
The numbers highlight a shifting balance in Europe’s fast-growing EV sector, where Chinese automakers such as BYD are emerging as formidable competitors.
BYD surges past Tesla in sales
While Tesla stumbled, BYD’s growth in Europe was striking. In Norway, often regarded as a bellwether for EV adoption, Tesla sales rose modestly by 21.3%, but BYD soared with a 218% jump.
China’s BYD Speeds Past Tesla in Europe pic.twitter.com/dq9NZsm7gR
— Suneel Sarfraz Munj (@suneelmunj) August 29, 2025
The pattern repeated across Southern Europe: Tesla gained 161% in Spain and nearly 29% in Portugal, but BYD still outpaced the American brand with a staggering 400% increase in Spanish sales.
In July 2025, BYD outsold Tesla in Europe for the first time, registering 13,503 vehicles compared to Tesla’s 8,837. This milestone underlined the shifting dynamics of the market. Just six years earlier, Tesla’s Model 3 commanded a 31% market share in Europe’s EV segment; today, the company’s European share has slipped to 1.7% in the first half of 2025, down from 2.5% a year earlier.
Market pressures mount for Tesla
Industry analysts point to multiple factors behind Tesla’s decline. A more crowded marketplace has eroded its early-mover advantage, with European automakers rolling out new electric models while Chinese firms offer affordable alternatives. Tesla has attempted to counter this with price cuts, but these have yet to deliver long-term sales momentum.
Compounding the challenge, Tesla has not launched a new mass-market vehicle since the Model Y in 2020. Meanwhile, rivals have steadily expanded their lineups, attracting buyers with fresh designs, varied price points, and improved range.
The secondhand market also reflects Tesla’s shifting fortunes. In the UK, sales of used Teslas hit a record in July, yet average prices for the Model Y have fallen 41% in just two years. Such depreciation suggests weakening consumer demand and questions about Tesla’s long-term value proposition.
Musk’s influence fuels consumer backlash
Beyond market dynamics, CEO Elon Musk’s political activism is playing an unexpected role in Tesla’s European slump. Surveys indicate that more than half of potential EV buyers in Europe are turned off by Musk’s outspoken political stance.
A study in Nature further revealed that liberal-leaning consumers are significantly less likely to choose Tesla compared to other EVs, explicitly citing Musk’s polarizing reputation.
This political dimension poses a unique risk for Tesla. Unlike traditional automakers, the company’s brand identity is tightly linked to its CEO. Consumer sentiment has declined across both liberal and conservative groups, with some owners even reporting embarrassment over driving a Tesla due to Musk’s public persona.
The road ahead
Tesla’s year-to-date sales in Europe have dropped 43% to around 77,000 cars, compared with 137,000 in the same period last year.
Meanwhile, BYD’s sales climbed 225% despite facing a 27% EU tariff on Chinese EV imports. The speed of this market realignment underscores Tesla’s vulnerability after years of dominance.
The broader lesson for the EV sector is clear: leadership in this industry can change rapidly. For Tesla, the road back to growth in Europe will likely require not only fresh products but also a more nuanced approach to public perception. Whether the company can rebound, or if Chinese automakers cement their lead, remains one of the most important questions in the global EV race.
