Tesla Is Losing Ground In Europe Even As EV Demand Accelerates

• From January through December, Tesla’s European registrations dropped around 27% to 238,656 units.
• In the European Union (EU) alone, Tesla’s new registrations declined nearly 32% in December.
• BYD reported 27,678 new registrations in December, a 230% increase from the previous year.

Tesla Inc.’s (TSLA) European challenges intensified in December, as fresh data from the European Automobile Manufacturers’ Association (ACEA) showed a sharp decline in registrations despite a booming electric vehicle (EV) market. Its shrinking market share adds to concerns about competitive pressures heading into 2026.

Tesla recorded 35,280 new registrations during the month, down 20% year over year from 44,190 units. This underperformance stood in stark contrast to the broader battery-electric vehicle (BEV) market, where registrations surged 50.3% to 308,955 units. As a result, Tesla’s BEV market share fell to 11.4%, nearly halving from 21.5% a year earlier.

The weakness was even more pronounced over the full year. From January through December, Tesla’s European registrations dropped around 27% to 238,656 units.

Chinese Competitors Hurt Market Share

Meanwhile, competition from China continued to gain ground. BYD reported 27,678 registrations in December, marking a remarkable 230% increase from the previous year. For full-year 2025, BYD’s European registrations jumped to 187,657, up from just 50,912 in 2024.

SAIC also reported solid growth. New registrations in December rose more than 15% year over year to 31,806 units, while full-year registrations climbed 25% to 305,717.

In the European Union (EU) alone, Tesla’s new registrations declined nearly 32% in December and 38% in 2025. Overall, new car registrations in the EU edged up by 1.8% in 2025, but volumes remain well below pre-pandemic levels. Battery-electric vehicles captured a 17.4% share of the market.

Globally, BYD sold 2,256,714 battery-electric vehicles in 2025, overtaking Tesla’s 1,636,129 units for the first time, according to a CnEVPost on Tuesday.

Stock Watch

TSLA stock was up 0.6% in pre-market trading on Tuesday, having closed 3% lower in the previous session. Tesla’s Director of Vehicle Operations and Engineering at Fremont, Benjamin Bate, reportedly left the company to join Chemelex, marking another senior departure, adding to a growing list of high-profile leadership changes at Tesla over the past two years.

Retail sentiment on Stocktwits remained in bullish territory over the past 24 hours. 

The stock is up more than 10% over the past year, though it has slipped about 4% so far in 2026.

Read also: UNH Stock Slides Pre-Market: United Health Warns Of Softer FY26 As Medicare Pressures Mount

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