In July 2025, Tesla’s new car sales in the UK plummeted by nearly 60%, with just 987 vehicles sold versus 2,462 a year earlier, according to SMMT data. Similar dramatic drops were seen in Germany, where Tesla deliveries fell by almost 55% on an annual basis.

In contrast, Chinese automaker BYD dramatically outperformed Tesla in both markets. In the UK, BYD’s July sales quadrupled from the prior year, and in Germany, its first-half 2025 registrations ballooned to 4,544.

BYD in Europe has surpassed Tesla in EV deliveries, cementing BYD's global position in plug-in sales. Analysts believe that Tesla also has supply issues due to BYD's aggressive competition and strongly price-sensitive products but also noted that consumer is disgruntled with Elon Musk's politics in Europe.