Tesla’s Europe Sales Fall 10.5% as Chinese Rivals Gain Ground

Tesla’s sales in Europe continued to fall in September and October, as Chinese rivals—particularly BYD—strengthened their market presence. According to the European Automobile Manufacturers’ Association (ACEA), Tesla delivered 39,837 all-electric vehicles across Europe in September, down 10.5% year over year, reducing its regional EV market share to 3.2%, from 4% a year earlier.

In the European Union, Tesla’s sales fell 18.6% to 25,656 units, while BYD’s European sales surged 398% over the same period.

The declines underscore a challenging year for Tesla in Europe. Through the first nine months of 2025, its regional sales dropped nearly 29% compared to the prior year, even as the company reported record global deliveries in the third quarter — boosted by an expiring U.S. tax credit. Analysts attribute Tesla’s struggles to an aging vehicle lineup and intensifying competition from European and Chinese brands offering more affordable, feature-rich EVs.

Tesla has also faced public backlash in Europe over CEO Elon Musk’s political activities, sparking protests in several markets. In response, the company launched lower-priced versions of the Model Y and Model 3, though limited availability has delayed their impact on sales.

New car registration data for October revealed further weakness: Tesla’s registrations plunged 89% in Sweden, 86% in Denmark, 50% in Norway, and 48% in the Netherlands. Spain saw a 31% drop, while France posted a modest 2.4% increase, marking its second month of growth. Industry-wide, however, electric and plug-in hybrid sales jumped 119% in Spain, underscoring intensifying competition.

In Denmark, Tesla was outsold by BYD, Xpeng, and Geely’s Zeekr, while in Spain, Tesla’s 393 units trailed SAIC’s MG (3,725), BYD (2,806), and Chery’s Omoda (1,433) and Jaecoo (974). “Car buyers have more choice than ever, with an influx of new EVs from established manufacturers and ambitious newcomers from China,” said Ginny Buckley, CEO, Electrifying.com.

In Sweden, Tesla sold just 133 vehicles in October, behind Porsche with 172. Year-to-date through October, its Swedish sales were down 67% from 2024 levels. The Norwegian market remains a rare exception, where Tesla continues to lead EV sales despite a 50% monthly drop in registrations after several months of growth.

Price remains a key barrier. The Model Y still costs around €40,000 (US$46,650) in many markets, while competitors such as Volkswagen plan to introduce EVs priced from €25,000 in 2026. The arrival of new, lower-cost EVs from both European and Chinese automakers is further intensifying market competition.

Despite Tesla’s decline, the European EV market continues to grow. ACEA reported that battery-electric vehicle sales rose 20% year over year in September, plug-in hybrids increased 65.4%, and hybrid vehicles climbed 16%.