Tesla's market share in the EU dropped sharply in July 2025. According to the European Automobile Manufacturers' Association (ACEA), the US carmaker experienced an approximately 42% decline in sales, whilst Chinese competitors BYD and SAIC recorded significant gains, surpassing Tesla in registration numbers. This marks a considerable shift in the balance of power in the European electric vehicle market, as Chinese companies further expand their footprint and Tesla continues to lose ground.