Tesla Falters in Europe as BYD Soars with 200% Registration Increase

Tesla's electric car registrations in Europe fell 40% YoY, while BYD's rose 200%. Tesla sold less than 9,000 cars, while BYD's sales surged. Analysts attribute Tesla's weakness to outdated models, delays in new cars, and CEO Elon Musk's controversial political views. BYD's success is due to its wider product range and lower prices. Tesla's stock dropped 1% after the news, highlighting its struggles in a growing market with increasing competition.

Tesla's electric car registrations in Europe fell by 40% year-over-year (YoY) in August, according to recent data. This decline was particularly notable in several key markets, including France, Sweden, Denmark, and the Netherlands, where registrations dropped significantly. Meanwhile, BYD, a Chinese electric vehicle (EV) manufacturer, saw its sales surge by 200% YoY, outpacing Tesla's performance [1].

In France, Tesla's registrations fell by 47.3% in August compared to the same month in 2024, while the overall car market grew by nearly 2.2%. In Sweden, Tesla's registrations dropped by more than 84%, despite a flat market for electric vehicles and an overall market growth of 6% [1]. Similar trends were observed in Denmark, where Tesla's registrations fell by 42%, and in the Netherlands, where they dropped by 50% [1].

In contrast, Norway and Spain saw an increase in Tesla's sales, with a 21.3% jump in registrations in Norway and a 161% increase in Spain. However, these increases were significantly lower than the 218% and 400% growth seen by BYD in these markets, respectively [1].

Analysts attribute Tesla's weakness to several factors, including outdated models and delays in new car releases. Matthias Schmidt, European autos market analyst at Schmidt Automotive, noted that the company's small, aging lineup and lack of new mass-market models since the Model Y in 2020 have contributed to its declining sales [1]. Additionally, Elon Musk's controversial political views and actions have sparked a consumer backlash, further impacting Tesla's market performance [1].

BYD's success can be attributed to its wider product range and lower prices, which have made its vehicles more attractive to a broader segment of the market. The company's focus on affordable electric vehicles has allowed it to capture a significant share of the European market, particularly in Spain, where its sales have surged by 675% year-to-date [1].

Tesla's stock dropped by 1% after the news of its declining European sales, highlighting the company's struggles in a growing market with increasing competition. Despite the challenges, some analysts remain optimistic about Tesla's long-term prospects, citing advancements in autonomous vehicles and AI, as well as the company's focus on new, more affordable models [2].

References:
[1] https://www.newsmax.com/finance/streettalk/tesla-sales-european-market/2025/09/01/id/1224654/
[2] https://global.morningstar.com/en-gb/stocks/teslas-stock-is-trouble-this-fund-manager-sees-comeback-2026