July marks Tesla’s seventh straight monthly drop
Tesla’s performance in Europe took another hit in July, with new car registrations plunging 40% year-on-year to just 8,837 units, according to the European Automobile Manufacturers Association (ACEA). This marks the seventh consecutive month of decline for the U.S. automaker, even as electric vehicle sales across the region continued to rise.
Meanwhile, China’s BYD posted a 225% jump in registrations for the month, reaching 13,503 vehicles. The sharp contrast highlights a growing shift in consumer sentiment and competitive dynamics within Europe’s electric vehicle market.
Stagnant model lineup and brand headwinds
Industry analysts point to Tesla’s aging vehicle lineup and delayed refresh cycles as major obstacles. While competitors regularly unveil new models and upgrades, Tesla has yet to introduce a widely available new release in Europe this year. The anticipated “affordable model” is still not expected until late 2025.
Beyond product stagnation, Tesla’s brand image has also come under pressure. CEO Elon Musk’s public statements and ties to U.S. political controversies have reportedly impacted the company’s reputation in European markets. Analysts like Thomas Besson from Kepler Cheuvreux suggest Tesla’s focus on AI and robotics, rather than its core automotive offering, is failing to resonate with traditional EV buyers.
BYD and Chinese EVs gain ground
In contrast, BYD is aggressively expanding in Europe. The company has opened multiple showrooms across the continent and introduced models at highly competitive price points. This strategy is paying off, as Chinese EV brands now command more than 5% market share in Europe—a historic high, according to JATO Dynamics.
BYD’s momentum reflects a broader trend, with other Chinese manufacturers ramping up production and targeting European buyers. The influx of affordable and modern electric vehicles from Asia is reshaping the competitive landscape, challenging legacy automakers and early movers like Tesla.
Mixed results across the industry
The pressure from Chinese entrants is not limited to Tesla. Other automakers such as Stellantis, Hyundai, Toyota, and Suzuki also reported year-on-year declines in July registrations. In contrast, Volkswagen, BMW, and Renault managed to post gains, suggesting that product strategy and regional alignment remain key to performance in this evolving market.
With Tesla struggling to keep pace and Chinese brands accelerating their expansion, the European EV market appears to be entering a new phase of realignment, where innovation, pricing, and brand positioning will determine long-term winners.
