In a major shift in the automotive industry, China's BYD Company has sold more electric cars than Tesla Inc in Europe's two largest electric-vehicle markets last year — Germany and the United Kingdom.
The 2025 figures mark a turning point, highlighting a broader global trend in which the Chinese automaker's rapid global expansion is running up against Tesla's cooling demand in key markets.
In Germany, which is Europe's largest car market, the contrast between the two manufacturers was stark. BYD registered more than twice as many new vehicles in December as Tesla did, Bloomberg reported.
For the full year, BYD's car sales in Germany surged eightfold to 23,306, while Tesla’s fell by nearly half to 19,390, figures released by the Federal Motor Transport Authority on Tuesday show.
Besides Germany, BYD also outperformed Tesla in the UK, the region’s second-largest market for plug-in cars. The manufacturer of the Dolphin hatchback pulled ahead of Tesla in September and finished the year with 51,422 registrations, compared to Tesla’s 45,513.
BYD and other Chinese carmakers have seen strong growth in the UK, which has not followed the European Union in imposing tariffs on Chinese-made electric vehicles. Their cheaper sticker prices have made them popular among consumers and helped Britain sell more than 2 million new vehicles last year.
Meanwhile, the Elon Musk-led Tesla has been struggling across Europe due to intensifying competition. This comes as other carmakers such as Volkswagen AG, Renault SA and BMW AG have expanded their EV offerings.
The intense backlash against Chief Executive Officer Elon Musk’s political activities has also significantly contributed to Tesla's difficulties, Bloomberg reported.
Tesla has already lost its position as the world’s largest seller of electric cars to BYD after reporting a 16% drop in its fourth-quarter deliveries and a second straight year of declining annual sales.
BYD, meanwhile, continues to expand overseas, even as momentum has slowed at home due to tighter rules on heavy discounting. In 2025, the vehicle manufacturer delivered 2.26 million EVs, compared with Tesla’s 1.64 million.
Tesla has also reportedly increased its price for vehicle leases. The EV maker displays monthly lease pricing on its website, and the monthly cost for a leased Model Y now ranges between $529 and $599, up from a prior range of $479 to $529, Reuters reported earlier.
