Tesla just clocked its eighth straight month of bleeding out in Europe, with sales down across almost every major market, after August offered no relief. The numbers show a company losing ground to faster, cheaper, and more aggressive rivals, especially China’s BYD, which is now eating into Tesla’s turf from Scandinavia to southern Europe. In France, new Tesla registrations for August dropped 47.3% compared to August last year. And while Tesla was falling, the rest of the French car market grew 2.2%. Over in Sweden, Tesla’s numbers cratered by 84%, even though Sweden’s broader auto market climbed 6%. In Denmark, Tesla fell 42%, while in the Netherlands, the drop was 50%. Italy was the least painful, but even there, Tesla slipped 4.4%. BYD pushes past Tesla in Spain and Portugal Only three countries offered Tesla any relief. In Portugal, after seven months of losses, registrations grew 28.7% in August. In Spain, government subsidies of up to €7,000 ($8,200) helped Tesla record a 161% spike, going from 549 vehicles to 1,435 in August year-on-year. But the win didn’t last long; BYD sold 1,827 cars in Spain that month, jumping over 400%. It wasn’t close. Zoom out to 2025 so far, and the contrast gets worse. BYD has sold 14,181 vehicles in Spain this year, a 675% increase. Tesla? Just 9,303, a rise of only 11.6%. That’s not even in the same lane. Matthias Schmidt, an auto market analyst at Schmidt Automotive, said the poor numbers aren’t a surprise. “Disappointing Tesla volumes can partially be attributed to a more competitive market environment.” He’s not wrong. Europe is being flooded with new EV models from both legacy brands and aggressive Chinese startups. Tesla hasn’t released a new mass-market car since the Model Y in 2020, and it’s now falling behind. Elon Musk, during an investor call in July, claimed there were “no issues with Tesla volumes on the European market.” That’s despite the fact that Tesla’s market share in Western Europe fell to 1.7% in the first half of 2025, down from 2.5% in 2024. Matthias called Musk’s statement “delusional.” Tesla’s people in Europe had earlier said the slump was temporary, blaming it on production changes for the revamped Model Y, which was Europe’s best-selling car last year. Deliveries started again in June, but August didn’t bring the bounce Tesla was hoping for. Model Y sales were down 46.5% in Denmark and 87% in Sweden. Ginny Buckley, CEO of EV site Electrifying.com, said Tesla’s image is cracking. “Musk’s influence on the brand has become increasingly polarizing.” Over half of the users surveyed by her site said Elon is the reason they won’t buy a Tesla. In Britain, the damage is already done. Marketcheck, which tracks used car sales, reported that used Tesla sales hit a record in July, spiking 270%. But buyers aren’t paying much. The average price of a used Model Y is now 41% lower than it was two years ago. Eight months deep in this mess, Tesla’s troubles in Europe are no longer a dip. They’re a trend. While competitors flood the market with cheaper EVs and governments offer incentives for anyone but Tesla, Elon Musk keeps denying the bleeding. But the numbers aren’t lying. They never do. If you're reading this, you’re already ahead. Stay there with our newsletter .
