Overview
Tesla’s European deliveries weakened markedly in 2025, with total sales across the European Union, the euro free trade zone and the UK slipping to 238,656 units from 326,525 units previously. That represents a near 27% decline, and Tesla’s share of the market contracted to 1.8% from 2.5%.
BYD’s rise
In contrast, BYD posted a substantial increase in European volume, with sales jumping 268.7% to 187,657 units. BYD’s regional market share rose to 1.4%, up from 0.4% in 2025, narrowing the gap with Tesla in the region.
Demand patterns and product mix
BYD’s more affordable battery models and its hybrid offerings have been well received by cost-conscious European buyers, a dynamic that has helped the Chinese automaker expand sales. Tesla remains focused on purely battery-driven electric vehicles, while BYD’s hybrid models have provided a distinct advantage in a market where hybrids accounted for 34.5% of vehicle registrations in 2025, compared with 17.4% for battery electric vehicles, according to ACEA data.
Recent momentum and historic trend
There were signs of partial recovery for Tesla at the end of the year: December sales were down 20% year-on-year but showed a sharp increase from November. Nonetheless, the company recorded another year of falling sales in Europe, following a 10.8% decline in 2024.
Competitive and sentiment headwinds
Tesla faces a more crowded competitive landscape as other automakers and hybrids gain traction. Consumer response to Tesla’s autonomous driving efforts has been largely muted, and souring sentiment toward the company’s CEO, Elon Musk, is cited as weighing on European demand.
Trade policy and upside for competitors
Despite relatively steep European import tariffs on Chinese-made EVs, BYD has continued to increase market share. The European Union was reported to be preparing to eliminate import tariffs on Chinese electric vehicles, a policy change that could benefit BYD and further accelerate its sales in the region.
Note: The article reflects reported sales, market-share figures and market composition data for 2025 and 2024 as stated above.