By Mauro Orru
BYD sold more cars in Europe than Tesla once again last month, a sign that Elon Musk’s electric-vehicle maker continues to face stiff competition from its Chinese rival as it expands aggressively in the continent.
New-car registrations for BYD models, a reflection of sales, more than tripled on year to 9,698 vehicles across the EU in July, according to the European Automobile Manufacturers’ Association, an industry body also known as ACEA. When including the U.K., Iceland, Liechtenstein, Norway and Switzerland, sales more than tripled to 13,503 vehicles.
In contrast, registrations for Tesla models in the EU contracted more than 42% to 6,600 cars, extending a streak of disappointing EU monthly sales for the company this year. December marked the last month when Tesla logged higher sales in the EU, with 5.9% growth.
Chinese carmakers have been expanding aggressively in Europe, winning market share from domestic rivals thanks to their relatively cheap and varied lineups of electric vehicles. Chinese state-owned automaker SAIC Motor also outsold Tesla in Europe in July, according to ACEA data. BYD first outsold Tesla in the continent in April, according to data from JATO Dynamics, a consumer-research group.
Aside from stiff competition overseas, Tesla has been dealing for months with the fallout from Musk’s previous involvement with the Trump administration. Investors were concerned the billionaire wasn’t spending enough time at the company during his time in Washington.
Tesla’s net income dropped 16% in the second quarter. The company has been revamping its lineup lately to appeal to more buyers. Since March, it has refreshed its Model Y crossover SUV, made updates to its luxury Model S and Model X vehicles and released a pared-down, lower-cost version of its Cybertruck.
July’s sales decline for Tesla models in the EU came despite signs that the bloc’s EV market is improving. Sales of battery-electric vehicles increased 39% on year, with 58% growth in Germany alone. Registrations of hybrid-electric cars rose more than 14%, while plug-in-hybrid models climbed 57%.
ACEA said overall EU passenger-car registrations grew 7.4% in July to 914,680 vehicles. Sales were up 11% in Germany, but down 7.7% in France and 5.1% in Italy. Germany’s Volkswagen Group logged sales growth of nearly 14%. Stellantis, the owner of the Jeep and Dodge brands, recorded a 0.9% decline in overall registrations.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
08-28-25 0014ET
