This article first appeared on GuruFocus.
Tesla (TSLA, Financials) is hitting a rough patch in Europe, where its sales slowed sharply last year while Chinese rival BYD (BYDDF) continued to gain momentum. Industry data show Tesla’s new registrations across Europe fell 27% in 2025 to around 239,000 vehicles, with December alone down 20% from a year earlier.
BYD moved in the opposite direction, selling nearly 188,000 cars a stunning 269% increase and lifting its market share to 1.4% from just 0.4% in 2024. Its more affordable electric models are proving popular with European drivers as the region’s EV market becomes more competitive and price sensitive.
Electric cars now make up 17.4% of all new cars sold in the EU, up from 13.6% a year ago. At the same time, traditional petrol and diesel automobiles are losing ground.
The data show that Tesla is under more and more pressure from new competitors and changing customer needs as Europe’s vehicle market welcomes a new generation of electric brands.
