Tesla's electric car sales in Europe continue to fall for the seventh consecutive month, while Chinese competitors, especially BYD, are seeing a sharp increase in popularity, CNBC reports.
Tesla registered 8,837 electric vehicles in July, down 40% from the same period last year. Meanwhile, BYD saw a 225% increase with 13,503 registered vehicles. Overall, electric vehicle sales in Europe also rose, according to the European Automobile Manufacturers Association.
This is a continuation of a negative trend for Tesla, which saw a 13.5% drop in electric vehicle deliveries in the second quarter of 2025. Moreover, sales of Elon Musk's company's cars also fell in the largest electric vehicle market in the United States, which has a negative impact on the entire segment.
One reason for the drop in sales in Europe is that Tesla has not updated its car lineup for some time, despite claims that it is working on a cheaper electric car. According to previous statements, its mass production should begin in the second half of 2025.
In parallel, Tesla management is trying to "convince investors that Tesla is not really a car company," instead talking about artificial intelligence, robotics, and autonomy.
"They talk about almost everything else but the car they’re selling at a slower pace now because effectively, the age of their vehicle is much higher than the competition and the latest products have not been as successful as hoped, notably the Cybertruck," said Thomas Besson, head of automotive research at Kepler Cheuvreux.