Tesla’s sales in Europe plummeted 40% in July – even as its Chinese rival BYD saw its sales triple.
It marked the seventh straight month of declines for Elon Musk’s automaker, which has continued to suffer from brand damage, a lack of enthusiasm over newer models and intense Chinese competition.
New car registrations of Tesla vehicles recorded a measly 8,837 in July, down 40% from the year before, according to European Automobile Manufacturers Association, or ACEA.
BYD, a Shenzhen, China-based electric vehicle-maker, hit 13,503 new registrations in the same month – a 225% jump from the previous year.
Tesla’s latest decline can’t be blamed on an industrywide slump, as overall sales of battery electric cars in Europe rose in July, according to the ACEA.
BYD has been able to win over European customers by rapidly opening showrooms and launching new models – while Tesla’s own model line-up gathers dust.
Tesla management has been trying to “convince investors that Tesla is not really a car company,” Thomas Bessen, head of automobile research at Kepler Cheuvreux, told CNBC’s “Squawk Box Europe” on Thursday.
During recent post-earnings calls, Tesla has been focusing on its artificial intelligence, robotics and autonomous technologies – but these are mostly future opportunities.
“They talk about almost everything else but the car they’re selling at a slower pace now because effectively, the age of their vehicle is much higher than the competition and the latest products have not been as successful as hoped, notably the Cybertruck,” Besson said.
That’s given Chinese rivals a chance to scoop up a larger share of the market, hitting a record share rate of more than 5% in the first half of the year, according to data released by JATO Dynamics last month.
Investors are hopeful that Tesla will release some refreshed models soon to boost sales.
Earlier this year, the company said it’s working on a more affordable EV with “volume production” planned for the second half of 2025.
Musk’s brand has also continued to suffer fallout from his ties to the Trump administration, earlier this year leading the White House’s Department of Government Efficiency – a cost-slashing committee better known as DOGE.
Protesters have swarmed Tesla showrooms across the country, and there’s even been a demonstration outside Musk’s new retro-futuristic diner in Hollywood.
Some Tesla vehicles have been set ablaze with molotov cocktails or vandalized.
In the second quarter, Tesla reported its auto sales revenue had fallen and Musk warned the carmaker “could have a few rough quarters” ahead.
