Tesla EU sales plunge 38% in 2025 as Chinese rival BYD surges 228%, data shows

2026-01-27 - 10:28

Tesla's sales in the European Union dropped sharply by 37.9% in 2025 compared to the previous year, according to data released Tuesday by the European Automobile Manufacturers’ Association (ACEA). The electric vehicle maker sold 150,504 units in the EU last year, down from 242,436 in 2024, with its market share falling from 2.3% to 1.4%. December Decline and European-Wide Trend In December alone, Tesla's EU sales decreased by 31.9% year-over-year to 21,485 vehicles. Across the broader European market—including the EU, European Free Trade Association countries, and the UK—Tesla’s sales declined by 20.2% in December and by 26.9% for the full year. The overall battery-electric vehicle market in the EU grew by 29.9% in 2025, reaching 1.88 million units. Rise of Chinese Competition While Tesla struggled, its Chinese competitor BYD posted explosive growth in the EU, with sales surging 227.8% year-on-year to 128,827 vehicles. BYD’s market share climbed from 0.4% in 2024 to 1.2% in 2025, highlighting the increasing penetration of Chinese EV brands in Europe. Industry analysts attribute Tesla’s decline partly to CEO Elon Musk’s polarizing political statements, his involvement in European policy debates, and intensifying competition from Chinese manufacturers.