By Alimat Aliyeva

Tesla’s car sales in Europe took a sharp hit in July, marking
the seventh consecutive month of decline for the American
automaker. Meanwhile, Chinese rival BYD recorded impressive growth,
highlighting a shifting dynamic in the European electric vehicle
market, Azernews reports.

According to the European Automobile Manufacturers Association
(ACEA), only 8,837 new Tesla vehicles were registered in July — a
40% drop compared to the same month last year. In stark contrast,
BYD registered 13,503 new cars, an astonishing 225% year-on-year
increase. Notably, Tesla’s sales slump occurred despite an overall
rise in electric vehicle sales across Europe, underscoring deeper
challenges for the company.

Tesla is facing mounting difficulties in Europe, including
fierce competition, pricing pressures, and reputational damage
linked to Elon Musk’s controversial statements and his ties with
the Trump administration. Globally, Tesla is also navigating
turbulent times: second-quarter revenue from car sales declined,
and Musk warned investors of “several difficult quarters”
ahead.

One of Tesla’s major issues is the lack of substantial updates
to its model lineup. The company has announced plans for a more
affordable electric vehicle, targeting mass production in the
second half of 2025 — a move many investors hope will revive sales
momentum.

Thomas Besson, head of automotive sector research at Kepler
Cheuvreux, pointed out that Tesla’s leadership is trying to
“convince investors that Tesla is more than just a car company,”
emphasizing artificial intelligence, robotics, and autonomous
driving technologies.

Meanwhile, Chinese manufacturers like BYD are aggressively
expanding their presence in Europe, opening new showrooms and
offering competitively priced models. According to JATO Dynamics,
Chinese brands captured a record market share of over 5% in the
first half of this year.

Tesla isn’t the only brand feeling the heat from Chinese
competition. In July, other automakers such as Stellantis (owner of
Jeep), South Korea’s Hyundai Group, and Japan’s Toyota and Suzuki
also reported year-on-year declines in new car registrations in
Europe. Conversely, Volkswagen, BMW, and Renault Group managed to
grow their registrations during the month, benefiting from shifting
market dynamics.

BYD isn’t just selling cars; it’s investing heavily in local
production and charging infrastructure — factors that boost its
appeal among European buyers and set a new standard for competition
in the region.