This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) is hitting a rough patch in Europe. Sales dropped 40% in July to just 8,837 cars, marking the seventh straight month of declines, ACEA data shows. What makes the slide sting even more is that overall EV sales across the region are still growing.
Meanwhile, Chinese rival BYD (BYDDF) is racing ahead. Registrations soared 225% year-on-year to 13,503, underscoring its rapid European expansion with cheaper, well-equipped models. Chinese automakers as a group now control a record 5% of Europe’s market share, according to JATO Dynamics, with BYD leading the charge.
For Tesla, the challenge is multi-layered: tougher competition, brand baggage tied to Elon Musk, and a lineup overdue for fresh models. The company is betting big on a more affordable EV, slated for volume production in the second half of 2025, as the catalyst to win buyers back.
Other global brands had mixed resultsStellantis (NYSE:STLA), Hyundai (HYMTF), Toyota (NYSE:TM), and Suzuki (SZKMY) saw sales fall in July, while Volkswagen, BMW, and Renault posted gains.
