"Tesla's July European sales drop 40% as BYD gains ground"

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.

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