Tesla Europe Sales Collapse: Market Share Halves as Chinese Rivals Surge

I’ve been documenting Tesla’s European decline all year, and the final numbers are in: it’s worse than even I expected. While the broader European EV market surged 27% in 2025, Tesla’s sales cratered 38.8% to just 129,000 units. That’s not missing a trend. That’s a market share collapse from 2.2% to 1.3% in 11 months while Chinese competitors executed the invasion we’ve been warning about.

• What: Tesla EU sales down 38.8% (129,000 units) while overall EV market grew 27% (2.27 million units)
• The Numbers: BYD sales up 240% to 110,715 units; SAIC/MG now leads Chinese segment with 191,000+ units
• Market Share: Tesla’s EU share halved from 2.2% to 1.3%; Chinese brands now outsell Tesla more than 2-to-1
• Why It Matters: Tesla’s structural European decline raises questions about service network investment and long-term ownership implications

The data comes from the European Automobile Manufacturers’ Association (ACEA), which tracks registrations across the EU, UK, and EFTA nations. According to El Times, electric car sales across Europe rose 27% in the 11 months through November, compared with the same period in 2024, despite Tesla’s continuing decline.

The Real Story: Tesla’s Market Share Has Halved

Here’s what the mainstream headlines aren’t telling you: Tesla’s European market share has effectively halved in less than a year.

In the same period last year, Tesla sold nearly 211,000 vehicles in the EU, commanding a 2.2% market share. Now it’s down to 129,024 units and a 1.3% share. That’s not a cyclical dip or a production timing issue. That’s a structural collapse happening in real time.

The contrast with the broader market is stark. Battery-electric vehicles captured 16.9%of EU market share from January to November 2025, up from 13.4% for the same period in 2024. The EV transition is accelerating in Europe. Tesla is going backwards.

November’s data was particularly brutal: Tesla sold just 12,130 vehicles in the EU, a 34.2% decline from 18,430 in November 2024. The company’s market share for that single month dropped from 2.1% to 1.4%.

Chinese Brands Now Outsell Tesla More Than 2-to-1

While Tesla retreated, Chinese manufacturers executed aggressive expansion. The numbers tell the story:BrandJan-Nov 2025 Sales (EU)YoY ChangeSAIC/MG191,000++39%BYD110,715+240%Tesla129,024-38.8%

Combined, BYD and SAIC/MG sold over 300,000 vehicles in the EU region through November, more than double Tesla’s volume. Just three years ago, Tesla outsold BYD in Europe nearly 6-to-1. That gap has completely evaporated.

A caveat worth noting: a significant portion of BYD and MG’s volume includes plug-in hybrids (PHEVs), which are exempt from EU tariffs on Chinese EVs. Tesla sells only battery-electric vehicles. In a pure BEV-to-BEV comparison, Tesla remains a top-three brand in the EU. But the broader point stands: Chinese manufacturers are capturing the European buyers Tesla isn’t reaching.

BYD first outsold Tesla in Europe in April 2025, and has maintained momentum ever since. The company is building factories in Hungary and Turkey and considering a third plant in Spain or Portugal to avoid EU tariffs on Chinese imports.

Germany: Ground Zero for Tesla’s Collapse

Germany, Europe’s largest auto market and home to Tesla’s Berlin Gigafactory, exemplifies the company’s struggles. German EV sales jumped 41% in 2025 to 490,000 units. Tesla’s sales in Germany? Down 57.8% for the year.

In November alone, Tesla registered just 1,763 vehicles in Germany, down 64.2% from November 2023. Meanwhile, BYD set a new monthly record with 4,026 German registrations.

The UK tells a similar story. Britain is now Europe’s second-largest EV market, with 426,000 electric car registrations in 2025, up 26% year-over-year. Tesla’s UK registrations fell 19% in November while BYD more than tripled its British deliveries.

Four markets alone now account for 62% of all EU electric vehicle sales: Germany, France, the Netherlands, and Belgium. Tesla is losing ground in all of them.

Why Tesla Is Losing Europe

The Times cited three factors for Tesla’s decline: “consumer antipathy towards Musk, the emergence of stronger and cheaper competition from legacy and Chinese carmakers, as well as Tesla shipping fewer vehicles as it upgrades its models.”

That last point deserves acknowledgment. Tesla’s 2025 decline coincided with the transition to the Model Y “Juniper” refresh. Historically, Tesla sales dip before major updates as buyers wait for new hardware. Some portion of this year’s decline reflects that production cycle, though the persistent monthly declines suggest deeper issues at play.

The competitive pressure deserves the most attention. Europe now offers more than 150electric vehicle models, with at least 50 more launching in 2026. Tesla’s lineup of essentially two mass-market vehicles (Model 3 and Model Y) hasn’t seen meaningful innovation since 2020.

Pricing matters too. BYD’s compact models often retail for thousands less than Tesla’s updated Model Y, which starts at approximately $46,000 (43,000 euros) in Europe. Chinese manufacturers are targeting the price-conscious buyers who represent the next wave of EV adoption.

CEO Elon Musk’s political activities have also become a measurable business liability in Europe. A survey by Electrifying.com found 59% of respondents said Musk’s views made them less likely to buy a Tesla. Protests have targeted Tesla showrooms and charging stations across the continent.

EVXL’s Take

I’ve been covering Tesla’s European decline since April, when we first reported BYD outselling Tesla in the region. The pattern has been consistent: each month brings worse numbers, and each quarter confirms this isn’t a temporary production hiccup.

Here’s what I expect: Tesla’s European market share will stabilize somewhere between 1-2%, making the company a minor player in the region rather than the dominant force it was through 2023. Chinese manufacturers will continue gaining share, with BYD likely overtaking Tesla for the full year in 2026.

Tesla bulls will point to the Supercharger network, which remains the gold standard in Europe. That’s a fair argument. Tesla’s charging reliability still drives sales in regions with poor public infrastructure, and competitors are only beginning to catch up. But charging alone won’t reverse a sales trajectory this steep.

For current Tesla owners, this raises uncomfortable questions. Will Tesla continue investing in European service infrastructure as volumes decline? The company has already consolidated some service centers. Supercharger network expansion has slowed in several European markets. Resale values, already under pressure from Tesla’s price cuts, may face additional headwinds as the brand loses cachet.

For prospective buyers, the equation has fundamentally changed. The “Tesla or nothing” era is over. BYD, MG, Volkswagen, BMW, and others now offer competitive alternatives, often at lower prices with fresher designs. Tesla’s technological lead in areas like charging speed and over-the-air updates has largely eroded.

The bulls will also point to Tesla’s autonomous driving ambitions and robotaxi plans. Musk has said European Full Self-Driving approval could come in 2026. But FSD won’t sell cars to buyers who’ve already moved on to competitors. And with European regulators historically more cautious than their American counterparts, that timeline seems optimistic.

We’ve documented Tesla’s global sales crisis extensively, from the 60% German collapse in June to the UK market reversal in November. Today’s full-year data confirms what the monthly numbers have been telling us: Tesla’s European chapter is fundamentally changing.

Are you a Tesla owner concerned about European service availability? Or a buyer who switched from Tesla to a competitor this year? Share your experience in the comments.

Photo credit: Tesla