Tesla’s Decline in European Market
Tesla’s sales across Europe fell sharply in July, down 40% from the previous year. Data from the European Automobile Manufacturers’ Association (ACEA) showed that the company sold 8,837 vehicles across the EU, the UK, and the European Free Trade Association, compared with 14,769 in the same month last year. Despite updating its popular Model Y, Elon Musk’s company continues to face intensifying competition from Chinese manufacturers.
BYD’s Rapid Expansion
Chinese rival BYD more than tripled its registrations in Europe, rising from 4,151 last July to 13,503 this year. That growth pushed its market share to 1.2%, compared with Tesla’s 0.8%. Offering lower-cost models, BYD has been expanding aggressively and earlier this year outsold Tesla in Europe for the first time, according to research from JATO Dynamics.
UK Incentives and Broader Market Trends
In the UK, new government grants aim to encourage electric vehicle adoption, with subsidies of up to £3,750 available on certain Ford models, and 26 more models eligible for £1,500 discounts. At the same time, the Society of Motor Manufacturers and Traders reported a 5.6% rise in UK car production in July, though chief executive Mike Hawes cautioned that the sector still faces economic uncertainty and high investment costs. Across Europe, battery-electric cars accounted for 15.6% of new registrations in the first seven months of 2025, while hybrids proved even more popular, driven by strong growth in France, Spain, Germany, and Italy.
