Tesla is continuing to experience a sharp sales decline across key European markets, with new data showing a significant drop in vehicle registrations in both the United Kingdom and Germany, extending a months-long trend of falling market share for the U.S.-based electric vehicle (EV) maker.
According to figures released Tuesday by the Society of Motor Manufacturers and Traders (SMMT), Tesla’s new vehicle registrations in the UK fell nearly 60% year-over-year in July, dropping from 2,462 units in 2024 to just 987 last month, a 59.9% drop.
Meanwhile in Germany, Europe’s largest auto market, Tesla’s sales decreased by 55.1% to 1,110 units, with year-to-date sales down 57.8% to 10,000 vehicles, as reported by the Federal Motor Transport Authority (KBA).
This sharp downturn for Tesla comes despite the recent introduction of an upgraded version of the Model Y, the company’s most popular vehicle globally. The precipitous drop can likely be attributed to a number of reasons, including rising competition, shifting consumer sentiment, and lingering reputational challenges linked to CEO Elon Musk’s political commentary and affiliations.
While Tesla’s sales are dropping, BYD, China’s leading electric vehicle brand, is picking up the slack and seeing rapid growth in the same markets. In the UK, BYD sold 3,184 vehicles in July—more than four times its sales from the same month last year. In Germany, the company posted a nearly 390% year-over-year increase in registrations, continuing its aggressive expansion strategy in Europe.
BYD overtook Tesla in monthly European EV sales earlier this year and now ranks among the top 10 automakers in the region.
In contrast to Tesla’s performance in the UK and Germany, and much of the rest of Europe, the automaker continues to shine in South Korea, where it recently set a new sales record for the month of July. Last month also marked the third straight month the Model Y was the best-selling imported vehicle.
