Tesla Europe Sales Fall for 13th Straight Month as BYD Surges

Tesla Europe sales fall for 13th month as BYD surges 165% in January, highlighting rising Chinese EV competition and shrinking market share

U.S. electric vehicle maker Tesla Europe sales continued their downward slide in January, marking the 13th consecutive month of decline across key regional markets, according to fresh industry data.

Figures released by the European Automobile Manufacturers Association (ACEA) showed that new registrations for Tesla dropped 17% year-on-year to 8,075 vehicles in January. The latest data underscores persistent weakness in Tesla Europe sales, with the company’s market share across the European Union, Britain, Switzerland, Norway and Iceland slipping to 0.8%, down from 1% a year earlier.

Analysts described the start of 2026 as “very weak” for the U.S. EV giant. Rico Luman, senior sector economist at ING, said Tesla’s brand image in Europe has deteriorated over the past year, while competition has intensified significantly.

Chinese Rivals Accelerate Growth

Chinese automakers are rapidly gaining ground. New registrations for BYD surged 165% year-on-year to 18,242 vehicles in January. The Shenzhen-based EV maker more than doubled its regional market share to 1.9%, compared with 0.7% in the same month last year. The sharp contrast highlights mounting pressure on Tesla Europe sales as Chinese rivals expand their footprint with competitively priced models.

Brands such as MG Motor and ZEEKR are also offering affordable EV options, giving European consumers more choice. Analysts say Chinese manufacturers benefit from structural cost advantages, particularly in battery production and labor.

Used Market Adds to Pressure

Another factor weighing on Tesla Europe sales is the expanding second-hand market. Large numbers of first-generation Tesla vehicles are returning after 4–6 year lease periods, pushing down used-car prices and increasing the supply of competitively priced pre-owned models.

Tesla’s focus on autonomous driving and robotics, rather than rapidly expanding its mass-market lineup, may also be limiting its appeal among price-sensitive European buyers.

Political and Brand Challenges

Tesla has also faced reputational headwinds linked to CEO Elon Musk and his political involvement in the United States, including his ties to Donald Trump. Protests at some European dealerships during the height of Musk’s political engagement added to the challenges facing Tesla Europe sales.

Broader EV Market Trends

Overall car sales in the EU, Britain and European Free Trade Association countries fell 3.5% year-on-year in January to 961,382 units. Petrol car registrations plunged about 26%, while battery-electric vehicles rose nearly 14%, plug-in hybrids jumped 32%, and hybrid-electric models increased 6%.

Despite overall EV growth, the continued decline in Tesla Europe sales highlights intensifying competition and structural cost pressures reshaping Europe’s electric vehicle market.