Tesla’s struggle in the European market deepened last month, as the electric vehicle (EV) pioneer saw a sharp decline in sales despite efforts to refresh its lineup. According to figures released today by the European Automobile Manufacturers Association (ACEA), Tesla delivered 8,837 vehicles across the EU, the EFTA trade bloc, and the UK in July—a 40% drop from 14,769 units sold in July 2024.
The slump, which began earlier this year, persisted even after Tesla’s revamp of its Model Y, suggesting that controversies surrounding CEO Elon Musk’s political stances may still be affecting the company’s brand. Musk’s recent public break with former U.S. President Donald Trump has yet to translate into improved sales. Year-to-date figures show Tesla’s deliveries in Europe are down 33% for the January–July period.
Competition in the EV sector is intensifying, particularly from Chinese manufacturers. Shenzhen-based BYD, for example, more than tripled its European sales year-on-year in July, delivering 13,503 vehicles compared with 4,151 a year earlier, a 225% increase. This gave BYD a 1.2% market share, surpassing Tesla’s 0.8%. BYD overtook Tesla in European sales back in April and recently launched its Dolphin Surf EV in the UK, priced from £18,650.
The broader European EV market continues to expand. ACEA reports that 1,011,903 new battery-electric vehicles were registered in the first seven months of 2025, representing 15.6% of the EU market. Hybrid-electric vehicles remain even more popular, with 2,255,080 units sold across the EU so far this year, driven by strong growth in France (+30.5%), Spain (+30.2%), Germany (+10.7%), and Italy (+9.4%). Hybrids now account for nearly 35% of the total EU market.
Overall, new car registrations in Europe rose 5.9% in July to 1.085 million vehicles, highlighting a resilient automotive market despite the challenges facing Tesla.
