This article first appeared on GuruFocus.
As 2025 comes to an end, and while we take a look back at Tesla’s (NASDAQ:TSLA) EV business, the year has not been as good as the start, especially in Europe. Tesla had a rough year in the European Union. Sales of its electric vehicles slumped sharply in the first 11 months, according to European Automobile Manufacturers’ Association (ACEA) data.
Tesla sold about 129,000 cars in the EU from January through November, down from roughly 211,000 during the same period in 2024, a drop of around 39%. Meanwhile, overall EV sales across the region continued to grow, making up about 17% of the market.
Chinese automaker BYD (BYDDF) has been gaining ground fast. The company sold more than 110,000 cars in the EU so far this year, compared with just over 32,000 in 2024. Cheaper prices and a wider model range are helping BYD attract European buyers.
According to analysts, the drop in Tesla can be attributed to increasing competition from other, more affordable brands and certain reputational risks associated with high-piled politics in Europe by Elon Musk. November sales were also an abrupt drop, and it is unclear how Tesla will be able to recover itself in the form of new models and pricing action in 2026.