Tesla, the American electric vehicle manufacturer, is experiencing a serious decline in its sales in the European market.

According to data from the European Automobile Manufacturers Association (ACEA), new registrations of Tesla vehicles in the European Union fell by more than half in April 2025 compared to the same month last year, with only 5,475 new vehicles registered, marking a drop of 52.6%.

Over the first four months of 2025, Tesla's overall sales totaled 41,677 vehicles, a decrease of 46.1% year-on-year.

This decline represents a significant challenge for Tesla, which has led the electric mobility sector for years and expanded aggressively across Europe, including the opening of its Gigafactory in Grünheide, Germany.

However, recent analysis by consulting firm Jato Dynamics reveals that Tesla has fallen from its previous dominant position, ranking below ten other competitors in the European market for the first time.

This includes traditional automakers such as Volkswagen, BMW, and Renault, as well as the emerging Chinese manufacturer BYD.

In April 2025, BYD sold 7,231 vehicles across 28 countries in Europe, slightly surpassing Tesla's sales of 7,165 vehicles.

Felipe Munoz, an analyst at Jato Dynamics, characterized this as a 'turning point' for the automotive market in Europe, highlighting how Tesla, a long-time leader, is now facing increasing competition from BYD, which has only recently entered the market.

BYD has strategically focused on key markets such as the United Kingdom, Spain, and Italy, though its presence in Germany remains limited, with its market share steadily growing.

The company is expanding its footprint in the German market primarily through sales to rental companies and self-registration methods, while its share among private customers is currently low—below 12%.

In contrast, established German manufacturers like Mercedes and Volkswagen have garnered higher shares among private buyers, with Mercedes achieving nearly 37% and Volkswagen around 26%.