Tesla’s sales in Europe fell sharply in October, nearly cutting in half from last year, while Chinese competitor BYD overtook the U.S. automaker with stronger sales and a larger market share.
Tesla Inc. (NASDAQ: TSLA) recorded 6,964 new registrations across the European Union, the Euro free trade area, and the UK during October, marking a 48.5% year-on-year drop, according to data released Tuesday by the European Automobile Manufacturers Association (ACEA).
Tesla’s market share in the region slipped to 0.6% in October, down from 1.3% a year earlier.
In contrast, Chinese EV manufacturer BYD Co. Ltd. (HK:1211) sold 17,470 vehicles in Europe during the same month—an increase of 206.8% from last year. BYD’s regional market share rose to 1.6%.
Overall car sales in October increased 4.9% to 1.09 million units. Hybrid electric vehicles remained the largest segment of the market, giving BYD an advantage, as the company sells both plug-in hybrid models and full battery EVs. Hybrid EV sales climbed 7.5% to 373,171 units.
Tesla’s European performance has weakened throughout 2025, and the latest figures point to a soft start to the fourth quarter. Rising competition and ongoing public criticism of CEO Elon Musk’s political stances have weighed on demand this year.
Tesla’s recent lineup refresh—which introduced lower-cost versions of the Model Y and Model 3—has also failed to generate a meaningful boost in sales. The company is encountering similar pressures in other key markets, including China.
BYD, meanwhile, has expanded aggressively overseas. Its sales in Europe continue to rise even after the EU imposed high tariffs on Chinese EVs in 2024. The company has partially avoided these duties thanks to its plug-in hybrid offerings.
