Tesla sold fewer cars in Europe than Volkswagen – what's happening to Elon Musk's company?

Main points

  • Volkswagen overtook Tesla in electric vehicle sales in Europe in 2025, selling 274,278 BEVs, while Tesla sold 236,357.
  • Chinese auto giant BYD has overtaken Tesla as the world's largest seller of electric vehicles, selling 2.26 million electric vehicles in 2025.

Volkswagen overtook Tesla in Europe with record figures / Collage by Channel 24, photo Getty Images, REUTERS

Volkswagen has overtaken Tesla in electric vehicle sales in Europe by 2025, marking another setback for the American automaker after China's BYD dethroned it as the world's leading electric vehicle maker last year.

Why is Tesla “giving up positions” among the leaders?

Volkswagen's battery electric car sales in Europe rose 56% last year compared to 2024, thanks to strong sales of the new ID.7, Reuters reports.

On the other hand, Tesla vehicle registrations fell by 27% over the same period. Volkswagen sold 274,278 BEVs in Europe, while Tesla sold 236,357.

Tesla's small, aging lineup of cars faces stiff competition in Europe from both traditional European automakers and a growing number of Chinese rivals. The company has also faced a consumer backlash in Europe over CEO Elon Musk's support for far-right parties on the continent,
– the publication writes.

Overall, electric vehicles made a “significant leap forward” in Europe in 2025, with electric car registrations up 29% compared to the previous year.

How did Tesla give the title of “king of electric cars” to China's BYD?

The Chinese auto giant has overtaken Tesla as the world's largest seller of electric vehicles, according to data for 2025, writes 24 Channel with reference to CNN.

BYD announced sales of 2.26 million electric vehicles, up nearly 28% from 2024. Meanwhile, Tesla reported a second consecutive year of sales declines, with deliveries falling 8.6% to just 1.6 million, the biggest annual drop in the company's history.

BYD was able to overtake Tesla even though its electric vehicles are not available for purchase in America, while China is Tesla's second-largest market. The company achieved its results by battling fierce competition and relentless price wars in its domestic market.

Automotive company news

  • The Japanese company Mazda has returned to the Russian market, introducing two crossover models, the CX-5 and CX-50, which are supplied from China. In 2022, Mazda sold its stake in the Vladivostok plant, but through structures related to the parent company, the cars have become available in Russia again.

  • Hyundai Motor lost the opportunity to buy back its plant in Russia, selling it for $97, as the option expired.

  • Trump raised tariffs on imports from South Korea to 25%, sending shares of Hyundai and Kia plummeting and potentially costing them $3.5 billion annually. Japanese manufacturers like Toyota gain a competitive advantage because their tariffs remain at 15%.

  • Honda is changing its logo for the first time in 50 years, ditching the square frame around the letter “H.” The new minimalist logo will debut on electric vehicles and be used across Honda's business.

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