Elon Musk lost another duel: China won again!

According to the latest data from the European Automobile Manufacturers' Association (ACEA), a powerful new player has entered the European electric car race. Once-market leader Tesla experienced a historic 42.4% year-over-year decline in EU sales in July 2025.

The data clearly demonstrates the dramatic shift in the market:

July Sales: While Tesla was only able to sell 6,600 vehicles in the EU in July, its Chinese rival BYD outpaced Tesla with sales of 9,698 units.

Market Shares: With these results, Tesla's market share in the EU decreased from 1.3% to 0.7%, while BYD's share increased from 0.4% to 1.1%.

Annual Performance (January-July): This decline isn't just a one-month phenomenon. In the first seven months of the year, Tesla's sales decreased by 43.5% compared to the previous year, from 137,071 to 77,446. Meanwhile, BYD increased its sales by 251.3% during the same period, from 16,633 to 58,434.

This aggressive growth positions BYD as a serious competitor in the heart of the European market.

Is the electric transition in Europe progressing slowly?

ACEA data also offers important insights into the overall electrification process in Europe. By July 2025, fully electric cars will account for only 15.6% of the EU market. ACEA states that this level is "well below what is required for this phase of the transition."

Hybrid-electric cars led the market, reaching a 34.7% share. This suggests that European consumers are still cautious about switching to fully electric models and view hybrid technology as a transitional solution. During the same period, the combined market share of gasoline and diesel vehicles decreased from 47.9% to 37.7%.

Critical moment for Elon Musk

Tesla's collapse in Europe represents one of the most critical moments since Elon Musk entered the automotive world. Chinese giants like BYD, distinguished by more competitive pricing and aggressive growth strategies, are becoming key players in Europe's new automotive era. The battle for leadership in the electric car market no longer revolves solely around Tesla; the race has become much more competitive and multi-polar.