Tesla's 7-Month Sales Decline: Is the EV Giant Losing Its Throne?

by Anjay Put Mei 25, 2025 Posting Komentar

Initially a powerhouse in the electric vehicle sector, Tesla is now confronting a challenge within the worldwide car manufacturing industry.

As reported by the China Passenger Car Association (CPCA), Tesla has experienced a year-over-year decline in sales in China for seven straight months now. This pattern is not exclusive to China; similar decreases have been observed in key markets like Europe and Australia, where sales figures have plummeted significantly.

On the contrary, Chinese electric vehicle leader BYD keeps expanding thanks to its bold pricing tactics and cutting-edge technology innovations, thereby intensifying the competitive heat on Tesla.

Seven-Month Downturn in Sales Faced by China

In April, Tesla offloaded 58,459 electric cars manufactured in China, which represents a decline of 6% from the figures recorded during the corresponding period the prior year. The sales for their principal vehicle types, namely the Model 3 and Model Y, experienced a downturn of 25.8% when contrasted with the numbers from the preceding month.

This decline has lasted for seven consecutive months. In the initial quarter, Tesla’s overall exports and domestic sales of vehicles manufactured in China dropped by 22% when compared to the same period last year.

In the meantime, BYD sold 372,615 passenger cars during this time frame, marking a 19.4% rise compared to the previous year.

BYD keeps growing its customer base thanks to an extensive range of vehicles that encompasses both all-electric and plug-in hybrid options from their Ocean and Dynasty collections. Analysts believe BYD is well-positioned to achieve its bold sales objective of 5.5 million units by 2025.

A notable contender is BYD's small hatchback, the Seagull, priced under $10,000, representing significant competition for international brands such as Tesla.

BYD is also stepping up technological advancement by including its sophisticated driver assistance system, known as God’s Eye, as a standard feature across most of its vehicle lineup at no extra charge.

Sales Drop in Europe and Australia as Well

The drop in Tesla's sales isn’t confined to just China; in April, their European figures also took a hit, seeing an overall decrease of 37.2% compared to last year. Specifically, Germany experienced a sharp decline of 46%, while the UK faced an even steeper fall at 62%.

In Sweden, sales plummeted by 80.7%, whereas the Netherlands experienced a 73.8% decrease. In Australia, intense rivalry from Chinese car manufacturers resulted in a 76% drop compared to the previous year.

Experts believe that CEO Elon Musk’s political activities have led to a significant decline in Tesla's sales within Europe. By openly backing Germany’s extreme right-wing party, Alternative for Germany (AfD), along with various scandals, his moves seem to have tarnished the brand’s reputation across the continent.

In the U.S., Musk's political engagements encountered significant opposition as well. Serving as the leader of the Department of Government Efficiency (DOGE) during the Trump administration, he spearheaded initiatives aimed at reducing substantial portions of federal spending. This action resulted in widespread demonstrations and boycotts targeting Tesla. In response, the company declared in its first-quarter financial statement that Musk planned to decrease his involvement with the DOGE.

In an effort to address declining sales, Tesla aims to broaden its market reach into emerging regions such as India and Saudi Arabia. Additionally, the company intends to commence large-scale production of a cost-efficient version of the Model Y—which will have a 20% decrease in production expenses—in 2026.

However, it remains uncertain whether Tesla’s strategic response will be enough to fend off aggressive pricing and rapid innovation from Chinese competitors like BYD.