Another week, another nugget of unfortunate sales news for Tesla: According to new data from the European Automobile Manufacturers Association (ACEA), Tesla car registrations in Europe were down for the seventh consecutive month in July, while registrations soared for the company’s Chinese competitor BYD.

BYD’s European sales first overtook Tesla back in May. At the time, Felipe Munoz, global analyst for the vehicle data firm JATO Dynamics, told Reuters: “This is a watershed moment for Europe’s car market, particularly when you consider that Tesla has led the European BEV [battery electric vehicle] market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022.”

In the weeks since then, BYD has continued to build on its success, slowly boxing Tesla out as the dominant EV player in Europe—and potentially inching toward overtaking Tesla as the global EV leader. 

A widening gap

In early August, data from automotive firms in both the U.K. and Germany already revealed that Tesla had stumbled on sales in July when compared with BYD. Now, the ACEA’s new report—which accounts for countries in the European Union, the U.K., and the European Free Trade Association—shows that the same pattern played out across the entirety of the European market.

Per the ACEA report, European car registrations of Tesla vehicles totaled 8,837 in July, down 40% year on year. BYD reported 13,503 registrations, up 225%. In terms of total market share, BYD now controls 1.2% of the market, in comparison with Tesla’s 0.8%.

From a macro perspective, July is a reflection of a broader pattern that’s emerged in 2025: Since January, European Tesla registrations have slumped by over 33%, compared with the same period in 2024, while BYD’s registrations have risen by over 290%.

As BYD has continued to grab European market share this year, it’s simultaneously been working on improving its tech to garner more mass-market appeal. In March, the EV maker launched a new ultrafast charging system that it says is nearly as quick as pumping gas, and in July, it debuted a groundbreaking self-parking ability that allows its vehicles to navigate parking lots, find a spot, and park completely autonomously. Both are features that Tesla has yet to achieve.

Meanwhile, Tesla has been battered this year by CEO Elon Musk’s reputational damage, a massive Cybertruck recall, and declining revenue. Recently, the brand has been shifting focus away from its existing vehicle lineup and toward breaking into the nascent robotaxi industry (though a recent Florida court verdict may stifle those plans). In a recent interview with CNBC, Thomas Besson, head of automobile sector research at Kepler Cheuvreux, said that Tesla has been actively trying to distract investors from its vehicle sales.

“They talk about almost everything else but the car they’re selling at a slower pace now. Because effectively, the age of their vehicle is much higher than the competition, and the latest products have not been as successful as hoped, notably the Cybertruck,” Besson said.