Tesla’s crisis in Europe has continued to deepen, with new data showing a dramatic plunge in car sales in key markets.
Figures published Tuesday by the U.K.’s Society of Motor Manufacturers and Traders (SMMT) revealed that Tesla’s new vehicle registrations fell nearly 60% year-on-year in July, slumping to just 987 units from 2,462 a year earlier.
In Germany, Europe’s largest economy, the collapse was just as steep—Tesla sold only 1,110 cars in July, down 55.1% from the same month in 2024. Between January and July, Tesla’s total sales in Germany dropped nearly 58% to just 10,000 units, according to data from the country’s road traffic agency, KBA.
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In stark contrast, Chinese electric vehicle powerhouse BYD is rapidly expanding its foothold across Europe. In July alone, BYD sold 3,184 cars in the U.K., more than quadrupling its sales from the same month last year. In Germany, the company posted a staggering 390% year-on-year increase in sales, underlining its aggressive push into Europe’s competitive EV market.
The figures reinforce an unrelenting downward trajectory for Elon Musk’s automaker in Europe. Last month, data from the European Automobile Manufacturers Association showed that Tesla lost market share across the continent for the sixth consecutive month in June.
While Tesla has faced stiff price and product competition from BYD and other Chinese automakers, the U.S. company is also battling the consequences of its CEO’s political entanglements. Elon Musk’s increasingly vocal support for the Trump administration and his alignment with far-right political figures has caused significant reputational damage in liberal-leaning European markets. Analysts say that Musk’s polarizing rhetoric has alienated a substantial segment of Tesla’s traditional customer base, many of whom are environmentally conscious consumers who now view the brand with skepticism.
BYD, in turn, has been meticulous in capitalizing on this rift. The Chinese automaker is not only offering more affordable and competitively specced vehicles, but also building its brand on neutrality and accessibility. With no political baggage and a sharp focus on localized strategies, BYD is filling the vacuum Tesla once dominated.
Cybertruck has also turned from Tesla’s most anticipated model into one of its biggest disappointments. The vehicle’s production has been plagued by engineering flaws and quality control issues. Sales are collapsing. According to Cox Automotive, only 4,306 Cybertrucks were sold in the second quarter of 2025, a sharp 32% drop from Q1 and a staggering 50% decline year-over-year. Those figures are not just bad — they’re the worst Tesla has posted for any model over the course of a year.
Amid the freefall, Tesla has been exploring various avenues to reverse its fortunes. Musk recently announced plans to unveil a robotaxi on August 8, with hopes that autonomous vehicle technology might spark a new growth curve for the company.
Some analysts have bought into that hope.
Keith Fitz-Gerald, Chief Investment Officer at Fitz-Gerald Group, noted last month: “Betting against Elon Musk is like betting against Steve Jobs. Tesla could reach a $20 trillion valuation if it executes.”
Musk responded to the claim by saying: “Extreme execution is needed, but a $20 trillion valuation is possible.”
However, Musk has acknowledged that the company could face “a few rough quarters,” citing higher tariffs in Europe and the expiration of federal EV tax credits in the United States. But the scale of Tesla’s European collapse suggests the problem goes beyond regulatory or macroeconomic challenges.