The European Automobile Manufacturers’ Association (ACEA) has announced its August numbers by country and by brand. Tesla Inc. (NASDAQ: TSLA) took a beating, but sales of Chinese rival BYD took off.
Tesla has suffered falling sales in Europe in 2025. Some blame Elon Musk’s political stances in the European Union and the United States. Some think it is a lack of new models. And, finally, there is BYD’s move into the market.
During the month, Tesla’s sales dropped 37% to 8,220, while BYD’s surged 201% to 9,130.
Tesla has a clear advantage it cannot exploit for now. Tariffs have hurt BYD across much of Europe. They are currently 17% on cars imported from China.
Tesla’s sales decline is part of a global struggle. It is losing ground to BYD and other local manufacturers in China, which is the world’s largest electric vehicle (EV) market by far. Its market share in the U.S. dropped below 49% in the second quarter. It had been as high as 80%. Tesla also is up against growing EV sales by legacy car companies in the U.S.
There is a chance BYD will make it into the U.S. despite 100% tariffs. China’s EVs are considered some of the best in the world.
Tesla’s share price is still remarkably high. After dropping earlier in the year, the stock has risen 30% in the past three months. Its market cap is $1.5 trillion, which makes it the 10th most valuable company in the world.
Tesla has been able to maneuver its image as one that is a robotics and AI company. This, in turn, is the reason for the stock run-up. However, it cannot hide behind that forever if unit sales do not increase.
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