Tesla Sales Plunge as BYD Surges in Europe

Tesla's sales in Germany and the UK plunged by over 55% and 60% respectively in July 2025 compared to the previous year, even as overall electric vehicle sales in both countries increased. In contrast, Chinese automaker BYD experienced rapid growth, with sales in Germany and the UK surging by nearly 390% and over 314%, positioning BYD as a key competitor to Tesla in new registrations. Tesla's market share in Germany fell sharply from 8.3% to 3.6%, dropping the company from third to eighth in the EV rankings. The downturn for Tesla coincides with heightened political activity by CEO Elon Musk and comes despite his recent approval of a large compensation package. BYD's aggressive European expansion and more affordable models are reshaping the region's EV landscape. Analysts describe this as a pivotal moment, signaling a shift in market leadership from Tesla to BYD.