BYD Outsells Tesla in Europe
For the first time in modern electric car history, Tesla is no longer the world’s biggest EV brand. In 2025, Chinese manufacturer BYD officially surpassed Tesla in full-year global electric vehicle sales, and Europe has played a key role in that shift.
BYD delivered more than 2.25 million electric vehicles worldwide in 2025, compared to Tesla’s roughly 1.64 million. That gap is significant, and it signals a changing balance of power in the global EV race, particularly across European markets.
BYD Becomes the World’s Biggest EV Seller
Tesla has dominated the EV conversation for more than a decade, but 2025 marked a turning point. BYD’s rapid expansion, combined with slowing Tesla growth, resulted in BYD becoming the world’s largest electric vehicle manufacturer by annual sales.
While Tesla experienced its second consecutive year of declining deliveries, BYD continued to grow at pace, posting double-digit year-on-year increases despite tough market conditions.
This wasn’t driven by one standout model, but by volume across multiple segments.
Europe: A Key Battleground Tesla Is Losing
Europe has quietly become one of BYD’s strongest regions. In several European countries, including the UK, BYD has regularly outsold Tesla on a monthly basis through 2025.
Tesla still performs well in certain markets, but European buyers are increasingly looking beyond premium EVs and prioritising value, range, equipment levels and price stability.
BYD has positioned itself perfectly for that shift.
Why BYD Is Winning Customers from Tesla
The reasons behind BYD’s rise are straightforward.
First, model choice. BYD offers a wide range of electric cars, from compact city cars to family hatchbacks and SUVs. Models like the Dolphin and Seagull target price points Tesla does not compete in.
Second, affordability. Even after multiple price cuts, Tesla’s cars remain expensive compared to many BYD alternatives. BYD’s pricing strategy has enabled it to undercut Tesla while still offering a competitive range, strong build quality, and generous standard equipment.
Third, manufacturing scale. BYD builds its own batteries and controls more of its supply chain than almost any other EV manufacturer. That gives it pricing flexibility Tesla struggles to match, especially in cost-sensitive markets like Europe.
We must also realise the Musk factor, when a company figurehead turns to politics, particularly one as synonymous with a brand as Musk is to Tesla, it can obviously have a knock-on effect on the desirability of a brand to its customer base.
Tesla’s Challenges in 2025
Tesla’s sales decline does not mean the brand is in trouble, but it does highlight growing pressure.
Its model line-up is ageing, with the Model 3 and Model Y still doing most of the heavy lifting. Competition has intensified rapidly, not just from BYD but from European, Korean and other Chinese brands offering newer designs and sharper pricing.
European consumers are also becoming less brand-led and more pragmatic. Monthly payments, real-world range and equipment levels matter more than badge appeal.
What This Means for the European EV Market
BYD outselling Tesla in Europe is not just a headline; it’s a sign of where the market is heading.
Electric cars are no longer niche or premium products. They are mainstream purchases, and brands that offer affordable, practical EVs are gaining ground quickly.
Tesla remains a major player, but it is no longer untouchable. BYD’s success demonstrates that scale, pricing, and product diversity now matter as much as technological leadership.
As 2026 unfolds, the European EV market is likely to become even more competitive, and Tesla will need to respond if it wants to reclaim its position at the top.
One thing is clear: the global EV race has changed, and Europe is at the centre of it.