Tesla’s grip on the European electric vehicle market continued to weaken in 2025 as Chinese automaker BYD made dramatic gains across the continent. The numbers paint a clear picture of shifting fortunes in the EV space.
Tesla registrations across the European Union, U.K., Iceland, Liechtenstein, Norway, and Switzerland dropped 27% for the full year to 238,656 units. December alone saw a 20% year-over-year decline to 35,280 units, according to data from the European Automobile Manufacturers’ Association.
BYD delivered the opposite story. The Chinese company more than tripled its December registrations to 27,678 units. For the full year, BYD registrations jumped 268.6% to 187,657 units.
While Tesla still sold more vehicles in Europe than BYD in absolute numbers, the gap narrowed considerably. BYD’s market share climbed to 1.4% from 0.4% in 2024.
The competitive pressure comes from multiple directions. BYD’s relatively cheap lineup of electric and hybrid vehicles has created stiff competition for established European automakers like Volkswagen and foreign rivals like Tesla.
Tesla has faced headwinds from Elon Musk’s involvement with the Trump administration, which ended a few months ago. The association weighed on buyer sentiment in key European markets.
Globally, Tesla sales fell 9% in 2025. Fourth quarter sales dropped 16% compared to the prior year. The company lost its crown as the world’s leading EV maker to BYD.
Tesla also announced changes to its Full Self-Driving offering. After February 14, the company will stop selling the advanced driver-assistance system for a one-time payment of $8,000. Customers will need to subscribe at $99 per month instead.
The move aims to grow recurring subscription revenue. It comes as Tesla faces mounting pressure from competitors in both China and Europe.
The broader European EV market showed positive momentum in December 2025. Battery-electric vehicle sales grew 51% year-over-year. Plug-in-hybrid models jumped nearly 37%, while hybrid-electric cars increased 5.8%.
Battery-electric cars captured 17.4% of EU market share in 2025, up from 13.6% the previous year. Hybrid-electric vehicles proved most popular among consumers, claiming 34.5% of the market.
The combined market share of petrol and diesel cars fell to 35.5% from 45.2% in 2024. The shift reflects ongoing consumer migration toward electrified vehicles.
Total passenger-car registrations in the EU increased 5.8% in December to 963,319 vehicles. Germany saw sales up 9.7%, while Italy recorded a 2.3% increase. France experienced a 5.8% decline.
BYD’s European registrations more than tripled in December to 27,678 units and reached 187,657 for the full year.
The post Tesla (TSLA) Stock: European Sales Drop 27% in 2025 as BYD Surges 268% appeared first on CoinCentral.
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