by In February, Chinese brands surpassed Tesla in the European car market.
Last month, Tesla registered 15,700 electric vehicles compared to 19,800 for Chinese brands.
BYD, Polestar, and XPeng have been growing in the European market, while Tesla has lost market share.
What a difference a year makes. Let’s rewind to the start of 2024 when Tesla’s European unit enjoyed the glory of being the top seller in the region throughout 2023 and the first company to bring an electric car – the Model Y – to the top of the sales list overall.
Now, updated sales data in 28 key markets, including the EU, UK, Norway, and Switzerland, indicate that not only are Tesla’s sales declining, but the American EV brand is generally yielding to Chinese car company owners.
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Figures from Jato Dynamics show that Tesla sold 15,700 cars in February 2025, down 44% from a year ago, while the electric car market grew by 26% to 164,100 units. Chinese brands accumulated 19,800 sales in February, casting a serious shadow on Tesla and leaving no doubt that China is making a significant breakthrough in the European car market. And this is just the beginning.
Tesla’s Market Share Takes a Hit
Weak Tesla sales reduced its market share to 9.6%, the worst February show for the past five years, and the automaker’s market share since the start of the year has dropped from 18.4% to 7.7% compared to 2024 figures. Part of the explanation may be the release of the updated ‘Juniper,’ which was shown in January this year but was not immediately available in Europe. Naturally, customers will want to wait for the new look SUV.
Sales of Model Y fell 56% to 8,800 units, while Model 3 sales decreased less sharply (yet still concerning) by 14%, which, according to Jato, suggests that the overall decline at Tesla is less about anti-Elon Musk sentiment and more about the imminent arrival of the new Y.
Electric Car Sales by Brand, Feb 25
DRAG
VW, Chinese Brands, and the New Wave
Whether the new model can completely reverse this decline remains to be seen, but we have doubts. The Juniper model changes are not so comprehensive, and Chinese brands (and legacy western ones) are just increasing their pressure on Tesla. BYD sales climbed 94% to 4,436, Polestar rose 84% to 2,405, and newcomer XPeng marked 1,034 sales, reflecting a 259% growth from February 2024.
Electric Car Sales by Model, Feb 25
DRAG
