Major declines in UK and Germany highlight ongoing struggles
Tesla is facing sharp headwinds in Europe, with new data revealing steep sales declines in two of the continent’s key auto markets. The electric vehicle maker saw its July new car registrations drop nearly 60% in the UK and over 55% in Germany, as competition and reputational concerns mount.
According to the UK’s Society of Motor Manufacturers and Traders (SMMT), Tesla sold only 987 vehicles in Britain last month, down from 2,462 a year earlier. In Germany, the drop was equally severe. Data from the KBA traffic agency showed Tesla delivered just 1,110 vehicles in July, marking a 55.1% decline. Year-to-date figures are even more alarming, with Tesla sales in Germany down nearly 58% to 10,000 units.
BYD’s European momentum intensifies
While Tesla stumbles, China’s BYD is rapidly gaining ground. In the UK, BYD sold 3,184 vehicles last month, a more than fourfold increase compared to July 2024. Germany also saw BYD’s momentum continue, with a staggering 390% rise in year-on-year sales. The brand’s expansion underscores the growing dominance of Chinese EV manufacturers in Europe.
BYD’s success reflects a broader consumer shift toward newer, competitively priced models that often undercut Tesla’s offerings in both price and features. It also showcases the growing appeal of brands perceived as less politically divisive.
Brand reputation and policy headwinds weigh on Tesla
Elon Musk’s political associations and public statements are increasingly seen as liabilities in Europe. Ties to the Trump administration and controversial rhetoric have reportedly alienated portions of Tesla’s traditional customer base, particularly in environmentally conscious European markets. In addition, Tesla is navigating a complex policy environment marked by the phasing out of U.S. EV tax credits and the looming threat of trade tariffs.
The European Automobile Manufacturers Association recently reported that Tesla has lost market share in the region for six consecutive months. Musk has warned of “a few rough quarters” ahead, as economic and regulatory conditions grow more challenging across both sides of the Atlantic.
Future outlook under pressure
Tesla’s dominance in the EV sector is being seriously tested. With Chinese automakers scaling aggressively and European consumers increasingly wary of the company’s brand, Tesla will need to adapt its strategy to regain lost ground. Pricing adjustments, new model launches, and improved regional PR efforts may be necessary to reverse its declining sales trajectory.
For now, the data paints a clear picture: Tesla’s European slowdown is accelerating, while BYD’s rise shows no signs of slowing down.
