Tesla’s sales in Europe have dropped nearly 45%, causing its market share to fall as Chinese rival BYD overtakes it in global revenue, surpassing $100 billion.
The Texas-based electric carmaker sold fewer than 16,000 vehicles across Europe last month, marking a 44% decline across 25 countries, including the EU, the UK, Norway, and Switzerland, according to Jato Dynamics. Tesla’s market share fell to 9.6%, its lowest February figure in five years. In January, sales had already declined 45% compared to 2024.
Despite the broader decline, the UK saw a 21% rise in new Tesla registrations in February, with the Model 3 and Model Y ranking as the second and third most popular models after the Mini Cooper.
Analysts have been evaluating the impact of Elon Musk’s political involvement, particularly his role in Trump’s administration, amid signs of consumer backlash and protests targeting Tesla dealerships. Meanwhile, Tesla’s competitors saw significant gains.
Volkswagen’s battery electric vehicle sales surged 180% to nearly 20,000, while BMW and Mini sold a combined 19,000 electric models. Chinese-owned BYD increased its European sales by 94% to over 4,000 vehicles. BYD also reported global revenues of 777 billion yuan (£86bn) in 2024, a 29% year-on-year increase, surpassing Tesla’s $97.7 billion.
While Tesla sold 1.79 million electric vehicles in 2024, BYD was close behind with 1.76 million. Including hybrid models, BYD’s total vehicle sales reached 4.27 million last year, nearly matching Ford’s 4.5 million. The company has projected sales of 5 to 6 million for 2025.
BYD’s market value has climbed to about $160 billion, rising 50% this year, while Tesla remains valued at $780 billion despite a more than one-third drop in its share price in 2025.
Total car sales across the 25 EU markets, the UK, Norway, and Switzerland fell 3% in February to 970,000, though battery electric vehicle registrations rose by 25%.
