BYD Overtakes Tesla in UK and Germany EV Sales
This article first appeared on GuruFocus.
Investors are increasingly weighing shifting competitive signals in Europe’s electric-vehicle market after data showed BYD (BYDDF) gained ground on Tesla (NASDAQ:TSLA) across the region’s two largest markets. Registration figures released by Germany’s Federal Motor Transport Authority indicated that BYD recorded more than twice as many new vehicles as Tesla in December, and full-year sales in Europe’s biggest EV market rose eightfold to 23,306 units. Over the same period, Tesla’s registrations in Germany declined by nearly half to 19,390, a trend that could point to mounting pressure as competition broadens.
A similar pattern emerged in the UK, Europe’s second-largest plug-in car market, where data from the Society of Motor Manufacturers and Traders showed BYD moved ahead of Tesla in September and finished the year with 51,422 registrations, compared with Tesla’s 45,513. Chinese automakers have made notable inroads in Britain, which has not followed the European Union in imposing tariffs on Chinese-made EVs, and their lower pricing has possibly helped push total UK new-car sales above 2 million units last year. This dynamic has drawn investor attention to how policy differences may influence market share outcomes.
These European developments follow Tesla relinquishing its position as the world’s top EV seller after reporting a 16% decline in fourth-quarter deliveries and a second consecutive annual drop in sales, while BYD delivered 2.26 million EVs in 2025 versus Tesla’s 1.64 million. At the same time, Tesla has faced intensifying competition in Europe from Volkswagen AG, Renault SA and BMW AG, alongside a consumer backlash linked to Chief Executive Officer Elon Musk’s political activities. Together, these factors could continue shaping investor expectations for Tesla’s regional performance as BYD expands overseas despite slower momentum at home amid scrutiny of discounting.
