Shares of Tesla (TSLA) slipped 2% in early trading hours on Thursday after Chinese rival BYD (BYDDF) captured Europe’s EV sales crown for the second month in a row. The latest data show BYD sold roughly three times as many new cars in the European Union in August 2025 as it did a year earlier. This reflects the Chinese automaker’s rapid expansion and intensifying competition in Tesla’s key growth market.
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Let’s Look at the Numbers
According to the European Automobile Manufacturers’ Association (ACEA), Tesla’s EU sales fell 36.6% to 8,220 cars, cutting its market share from 2% last year to 1.2%. In contrast, BYD sold 9,130 vehicles, marking a 201.3% increase and boosting its market share to 1.3%. When including the U.K., Norway, and other EFTA (European Free Trade Association) countries, Tesla’s sales dropped 22% year-over-year to 14,831 cars.
Meanwhile, Stellantis (STLA) saw its first year-over-year sales increase in Europe since February 2024, with registrations rising 2.2%. Stellantis returned to sales growth in Europe, supported by rising demand for plug-in hybrid (PHEV) and battery-electric (BEV) vehicles.
Overall, the ACEA reported that EU passenger-car registrations rose 5.3% in August, reaching 677,786 vehicles.
Europe Remains a Tough Road for Tesla
Tesla has struggled to grow car sales in 2025 due to stronger competition, an aging lineup, and concerns that CEO Elon Musk’s ties to the Trump administration may have put off some eco-conscious buyers. August numbers show another weak month for Tesla in Europe, as it continues to lose ground to local and Chinese rivals. Chinese brands, in particular, have used PHEVs to reduce the impact of EU tariffs on Chinese-made EVs and to attract European drivers.
Globally, Tesla sold 721,000 cars in the first half of the year, down about 13%. Wall Street expects around 447,000 vehicles to be sold in the third quarter, a 3% drop from 463,000 in the same period last year.
Is Tesla Stock a Buy, Sell, or Hold?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 15 Buys, 12 Holds, and eight Sells assigned in the last three months. The average price target for Tesla shares is $329.77, suggesting a potential downside of 25.5% from the current level.
