Elon Musk and Tesla have faced a major blow as demand for their electric vehicles has tanked to a dramatic low as Chinese competition closes the gap. New sales data from the European Automobile Manufacturers' Association (ACEA) shows that Tesla sales were down 37.9%in 2025, with almost 100,000 fewer models leaving forecourts.
Statistics show that just 150,504 brand new vehicles were snapped up across the EU last year, down from the 242,436 cars picked up by road users in 2024. Chinese manufacturer BYD enjoyed a breakthrough year in 2025 and is now chomping on the heels of the former American market leader.
The best-performing Chinese manufacturer saw sales grow 227% last year, with a whopping 128,827 models exceeding forecasts. This was on the 39,303 cars sold in 2024 as consumers had their heads turned by China’s affordable price tags.
In the UK. BYD stole Tesla’s crown as the market leader as sales just edged ahead before the end of the year.
According to data from the Society of Motor Manufacturers and Traders (SMMT), a total of 51,422 BYD models were sold in 2025 compared to 45,513 from Tesla. In December alone. BYD shipped a staggering 7,682 vehicles to customers, with Tesla registering just 6,286 sales.
Earlier this year, Bono Ge, country manager of BYD UK, said: “Ending 2025 with 51,422 registrations is an unbelievable achievement for BYD UK, and I would like to sincerely thank our customers for their enthusiasm for the brand and their confidence in our advanced EV and DM-i technologies.
“This result is further proof that our wide range of award-winning New Energy Vehicles are proving to be hugely desirable with both private and fleet buyers.”
However, the news could get worse for Tesla in 2026 with BYD lining up another spate of model launches.
The Chinese brand is set to open orders for their SEALION 5 DM-i and ATTO 2 DM-i shortly, with plans for the SEAL 6 DM-i Saloon and Touring to join the product range soon. However, Elon Musk hopes to fight back with a new Tesla Roadster, which is expected to be on the way in 2026 or 2027.
