Sales at Elon Musk’s Tesla have fallen by a shocking 40 per cent in Europe amid increased pressure from Chinese rivals in the electric vehicles (EVs) industry.
New data from the European Automobile Manufacturers’ Association (ACEA) shows EV sales rose by more than a third in July (33.6 per cent), meaning that combined with Tesla’s own drop in sales, the company’s market share has dropped to below one per cent.
First-half year sales from January to July also dropped by more than a third (33.6 per cent) compared to last year during the same period, as Tesla struggles with brand image, price competition and a lack of new models versus the offerings of their rivals.
The sales data covers the European Union, the UK and the EFTA region. Total battery EVs now account for more than 15 per cent of the European car market.
Chinese rival BYD sold 13,503 units in July, the data shows, compared to 8,837 from Tesla.
BYD surpassed Tesla for revenue in 2024 and launched a battery featuring five-minute charging in a lower-cost model car earlier this year.
Among other brands across July sales, Volkswagen and Skoda (both owned by Volkswagen Group) posted notable increases, as did Vauxhall/Opel and Dacia.
Jaguar’s EV sales dropped by 99 per cent however after they opted to relaunch as an electric-only brand from 2026, after phasing out other models this year.
The manufacturer selling the most overall units across the January to July period was Volkswagen, with more than 872,000 new registrations, a five per cent increase on last year for the same period.
“Tesla sales continue to be in hard reverse in Europe, suggesting Elon Musk’s divisive role in politics is still hurting the brand on this side of the Atlantic,” commented AJ Bell investment director Russ Mould.
Mr Musk warned Tesla shareholders to expect a “rough” time ahead as the company battles image issues and tries to revive sales, while an EV grant in the US will come to an end affecting consumer purchase ability. Tesla are also focused on developing their robotaxis.
Shares in the company are down 13 per cent in 2025 so far, though have recovered a further ten per cent in the past month.
