Tesla Sales Collapse Across Europe As Chinese Rivals Surge

Tesla is facing mounting challenges in the European automotive market, with sales plummeting sharply as competition from Chinese manufacturers intensifies. The American electric vehicle giant, headed by Elon Musk, saw sales drop by 40 per cent in July across Europe, the United Kingdom and Scandinavia, delivering just 8,800 vehicles despite relaunching the Model Y and increasing output at its Berlin gigafactory.

Over the first seven months of 2025, Tesla’s performance paints a similarly bleak picture—deliveries are down by a third, falling by 60,000 to 119,000 vehicles compared to the same period last year. In the UK, the situation appears even more acute with July sales slumping nearly 60 per cent to below 1,000 units. Year-to-date figures show a 7 per cent decline, amounting to 23,700 cars sold.

This steep decline stands in stark contrast to the robust growth of electric vehicle sales across Europe. Data from the ACEA, the European automotive association, reveals that Tesla is notably losing ground to more affordably priced electric and hybrid models from Chinese brands. BYD, for instance, more than tripled its sales in July to 13,500 vehicles. SAIC, the Shanghai-based owner of the MG brand, recorded a 13 per cent increase, reaching 23,300 cars sold in the same month.

The year-to-date numbers are significant; BYD increased its sales by 63,000, reaching a total of 84,000, while SAIC added 37,000 sales, totalling 176,000 units. Electric vehicle sales as a whole in Europe surged by 33 per cent in July, and nearly 26 per cent for the year to date, reaching 1.37 million. Despite this, battery-electric models still make up only 17.4 per cent of the total 7.9 million new cars sold across the continent.

Examining country-level adoption, Norway remains the outlier, with a staggering 94 per cent of its 85,000 new car registrations this year being electric. The UK is emerging as one of the stronger markets, with electric models accounting for over 21 per cent of sales—well ahead of both Germany and France, where EVs account for less than 18 per cent. The Netherlands and Belgium are also notable, with roughly a third of new car registrations being electric, indicating regional differences in the pace of EV adoption.

Despite ramped-up efforts and product launches, Tesla is struggling to maintain its foothold in a rapidly evolving market. The momentum is clearly with Chinese manufacturers, whose electric and hybrid offerings are striking a chord with European motorists and threatening Tesla’s once dominant position in the sector.