Tesla's car sales in Europe fell in July, marking the seventh consecutive month of decline, while its Chinese rival BYD recorded a significant increase, according to data released on Thursday.
Tesla's new vehicle registrations totaled 8,837 units in July, down 40% from the same period last year, according to data from the European Automobile Manufacturers Association (ACEA).
Meanwhile, BYD recorded 13,503 new registrations, up 225% year-on-year.
Tesla's decline comes despite overall sales of battery-electric cars in Europe increasing, according to ACEA.
Tesla is currently facing several challenges in the European market, including fierce competition from other manufacturers and reputational damage due to controversial statements by Elon Musk and his links to the Trump administration.
Globally, Tesla's performance has also declined.
Second-quarter sales showed a decline and Musk warned that the company could face several challenging quarters in the future.
One of the main reasons is the lack of a major refresh to its model lineup. This year, Tesla announced it was developing an affordable electric car with a target of mass production in the second half of 2025, which it hopes will revive sales.
