Tesla $TSLA ( ▼ 0.65% ) is losing momentum in Europe, and the numbers are starting to stack up.
Europe cools on Tesla
From January through November, Tesla sold about 129,000 vehicles in the European Union, a 39% decline from the same period last year, according to data from the European Automobile Manufacturers’ Association. That makes Europe, Tesla’s third-largest market, a growing pressure point after a tough year of price cuts, slowing demand, and rising competition.
The broader EV market tells a very different story. Battery electric vehicle sales across the EU rose 28% over the same period, suggesting the issue is less about EV demand and more about Tesla specifically.
China fills the gap
While Tesla slipped, Chinese rival BYD $BYDDY ( ▼ 0.75% ) surged. BYD’s EU sales jumped 240% to roughly 110,000 vehicles, narrowing the gap with Tesla after first overtaking it in monthly sales earlier this year. Tesla still leads BYD on a year-to-date basis, but the margin is shrinking fast.
Lower-priced models, aggressive expansion, and strong local partnerships have helped Chinese automakers gain share as European consumers become more price-sensitive.
Blame games and real risks
CEO Elon Musk has pointed to Europe’s slower regulatory approval of Full Self-Driving as a key drag on sales. That may be part of the story, but competition appears to be the bigger force at work, especially as Chinese EV makers flood the region with cheaper alternatives.
If Tesla cannot stabilize demand in Europe, it risks losing ground in one of the world’s most important EV battlegrounds just as competition accelerates.