Tesla sales slump 42% in Europe as BYD overtakes market share

European Tesla sales fell sharply in July, as the electric maker lost its share in the market for the seventh month in a row and slipped behind its Chinese competitor for the first time.

Numbers from the European Automobile Manufacturers Association (ACEA) show that Tesla sales in the European Union decreased by 42.4 percent on an annual basis, from 11465 to 6,600 vehicles. This reduces the market share of the company from 1.3 percent to only 0.7 percent.

The BYD, which was included in the monthly sales data of the European Union for the first time, recorded an increase in records from 3165 to 9698, raised its share to 1.1 percent and jumped in the classification.

The recession came in Tesla’s performance despite the strong growth of the sector in general. The sales of the battery electric vehicles across the European Union increased by 39 percent to 142,699 units. Total new car sales increased by 7.4 percent to 914680, which was strengthened, an increase of 11 percent in Germany, which compensates for a decrease of 7.7 percent in France and 5.1 percent in Italy.

Data emphasizes the increasing competitive pressures facing Tesla in Europe, as it once dominated the electric car market, but is now struggling with slowing demand, price pressures and the rapid expansion of Chinese competitors.

With the acceleration of the BYD momentum, analysts say Tesla is facing a battle to restore the stake in a market that has become increasingly crowded as traditional manufacturers increase their EV offers alongside the new arrivals.