Europe Turns Away From Elon Musk as Tesla Sales Plunge 43% While BYD Surges
Europe appears to be turning its back on Elon Musk and Tesla, with new figures showing a sharp decline in sales of the U.S. electric carmaker’s vehicles.
According to data from the European Automobile Manufacturers Association (ACEA), sales of new Tesla cars across the EU fell 43% year-to-date, dropping from over 150,000 vehicles sold between January and August 2024 to just 86,000 in the same period this year.
While Tesla’s sales have slumped, Chinese rival BYD has experienced explosive growth. Sales of BYD cars surged 244% year-on-year, jumping from just under 20,000 units in the first eight months of 2024 to almost 70,000 so far this year. BYD has now overtaken Tesla for the second consecutive month, highlighting a dramatic shift in consumer demand.
Impact of EU Tariffs on Chinese EVs
The figures come a year after the European Union imposed tariffs on Chinese electric vehicles in a bid to support domestic manufacturers and prevent an overwhelming influx of cheaper imports.
On Thursday, Sabine Weyand, Director General of Trade at the European Commission, told the European Parliament’s international trade committee that the tariffs were achieving their intended effect.
“200,000 cars were exported to the EU after measures, we cannot be accused of closing the market to China,” Weyand said, adding that European EV production had risen 19% while sales climbed 28% over the same period.
She emphasised that the tariffs were not designed to block Chinese carmakers entirely, but rather to give EU manufacturers the breathing room they need to scale up production and remain competitive.
Shifting Market Dynamics
ACEA’s latest data highlights significant changes in Europe’s car market:
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Electric vehicles (EVs) now account for 16% of all EU car sales.
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Hybrid vehicles have seen particularly strong growth, now representing 37% of the market.
The surge in hybrid sales is driving pressure on EU policymakers. German automakers, backed by Chancellor Friedrich Merx, are lobbying for “flexibility” on the EU’s 2035 net-zero mandate, which currently sets a deadline for ending sales of new petrol and diesel vehicles.
The manufacturers argue they should be allowed to continue selling hybrid models beyond 2035, reflecting ongoing consumer demand and the time needed for a full transition to electric-only production.
Tesla Faces Growing Competition
Tesla’s sharp decline highlights its growing challenges in Europe, where competition from Chinese manufacturers and established European brands is intensifying.
With BYD rapidly expanding its footprint and EU producers increasing output under the protection of tariffs, Tesla faces mounting pressure to regain market share amid a fast-evolving and highly competitive landscape.
