Tesla European Sales Drop Nearly 50% in October as BYD Expands Market Share

This article first appeared on GuruFocus.

Tesla (TSLA, Financials) reported a 48.5% drop in EU, Euro Free Trade Association, and UK registrations. Tesla delivered 6,964 cars in the month, lowering its market share to 0.6% from 1.3%, according to the European Automobile Manufacturers Association.

Tesla’s fast-growing Chinese rival BYD expanded. The business registered 17,470 automobiles in October, up 206.8% from last year, increasing its regional market share to 1.6%. BYD profited from a selection of fully electric and hybrid cars, which are popular with European purchasers and less subject to import restrictions than Chinese battery-electric vehicles.

October hybrid sales in Europe jumped 7.5% to over 373,000 units, while overall sales grew 4.9% to 1.09 million. Demand trends favored cars with diverse products, putting Tesla under strain in 2025’s European sales slump.

Recent Model 3 and Model Y improvements, including lower-cost variations, have not yet increased regional demand. Tesla confronts increased competition and public controversy over CEO Elon Musk’s political activism, which experts think has affected customer sentiment.