Tesla’s vehicle sales in Europe continue to slump, with new figures showing steep declines in two of the region’s key markets despite the recent launch of an upgraded Model Y.
According to data released on Tuesday by the Society of Motor Manufacturers and Traders (SMMT), Tesla’s new registrations in the United Kingdom fell nearly 60% in July to 987 units, down from 2,462 in the same month a year earlier. In Germany, the country’s Federal Motor Transport Authority (KBA) reported a 55.1% drop to 1,110 vehicles, with year-to-date sales down 57.8% to 10,000 units.
The sharp downturn comes as Tesla faces rising competition, shifting consumer preferences, and reputational challenges linked to CEO Elon Musk’s public commentary. The Model Y, Tesla’s best-selling vehicle globally, was recently refreshed but has yet to reverse the trend in Europe’s largest auto markets.
While Tesla’s sales are declining, BYD is rapidly expanding its footprint. The Chinese automaker sold 3,184 vehicles in the UK last month—more than four times its July 2024 total—and posted a nearly 390% year-over-year increase in registrations in Germany. BYD overtook Tesla in European monthly EV sales earlier this year and now ranks among the top 10 automakers in the region.
Despite its European slowdown, Tesla’s performance remains strong in South Korea, where it set a monthly sales record in July, led by the Model Y, which was the country’s best-selling imported vehicle for the third consecutive month.
