Tesla Sales Drop Sharply in Europe
Tesla’s performance in Europe has worsened, with new data showing a significant decline in sales amid growing competition in the electric vehicle market.
According to the European Automobile Manufacturers Association (ACEA), Tesla’s deliveries fell by 40% in July compared to the previous year. The company sold 8,837 vehicles across the EU, EFTA, and the UK last month, down from 14,769 in July 2024.
The slump, which began earlier this year, persisted even after updates to Tesla’s Model Y, suggesting that public sentiment toward CEO Elon Musk may still be affecting sales. Despite Musk’s recent distancing from political associations, Tesla’s performance has not improved. The decline in July was steeper than the 33% drop recorded for the first seven months of 2025.
Competition is intensifying, particularly from Chinese automakers. BYD, based in Shenzhen, saw its European sales surge by 225% year-on-year in July, reaching 13,503 vehicles. This gave BYD a 1.2% market share, surpassing Tesla’s 0.8%. BYD outsold Tesla in Europe starting in April and recently introduced its Dolphin Surf EV, priced from £18,650 in the UK.
ACEA data reveals that 1,011,903 new battery-electric cars were registered in the EU from January to July 2025, making up 15.6% of the market. Hybrid-electric vehicles were more popular, with 2,255,080 units sold in the EU this year. Growth was strongest in France (+30.5%), Spain (+30.2%), Germany (+10.7%), and Italy (+9.4%). Hybrid models now account for nearly 35% of the EU market.
Total new car sales in Europe rose by 5.9% in July, reaching 1.085 million.
Key Economic Updates
10am Eurozone confidence figures
1:30pm US Q2 GDP (revised estimate)
1:30pm US weekly unemployment claims
Read next
Jaguar Land Rover suppliers voice ‘everything is against us’ amid cutbacks
David Roberts, chair of Coventry-based Evtec, says the outlook for Britain’s automotive sector is grim, with “everything against us.” Evtec is a tier 1 supplier to Jaguar Land Rover, which this week announced 4,000 job cuts over two years despite chancellor John Healey’s attempt to talk
Europe’s fighter jet plans in disarray: what comes next?
When former ECB president and Italian PM Mario Draghi urged Europe to catch up economically with the US and China, defence collaboration was prescribed. No more should each nation build independent boats, tanks or jets; allies should share costs and technologies.
Europe stumbled at the first hurdle. German Chancellor Friedrich
John Healey supports growth but insists Labour must be truthful about spending
John Healey has stated that his primary goal as chancellor will be to boost economic growth, while acknowledging that Labour must be straightforward about controlling public spending at next month's budget.
In his first major address since assuming the role in July, Healey said the leading focus of