London, 6 August 2025 – New car registrations of Tesla vehicles in Britain and Germany more than halved in July, according to official industry data released on Tuesday, as CEO Elon Musk’s political leanings and increased market competition continue to weigh on the electric vehicle maker’s European performance.

In the UK, Tesla’s registrations dropped nearly 60% to 987 units, while in Germany they fell by over 55% to 1,110 units. Across 10 key European markets—accounting for more than 80% of Tesla’s first-half sales in the EU, UK, and EFTA—the brand’s overall decline in July reached 45%.

The decline follows disappointing sales of the revamped Model Y, which failed to revive demand. A recent Reuters investigation found consumer enthusiasm has cooled since Musk publicly endorsed Donald Trump during the run-up to his re-election campaign.

As reported by Shanima A and Yadarisa Shabong (Bengaluru), Amir Orusov and Alessandro Parodi (Gdansk) for Reuters, Chinese rival BYD posted massive gains, with sales rising five-fold in Germany and over four-fold in Britain in July. In Germany, BYD registered 1,126 units, while in the UK it sold 3,184 vehicles—a surge of over 300%.

“Markets seem to be betting Tesla’s future on its autonomous driving capabilities, rather than traditional EV models,” said Ben Nelmes, founder of EV data firm New AutoMotive. Musk has notably shifted Tesla’s focus from affordable EVs toward self-driving technologies.

Germany’s KBA reported total car registrations rose 11.1% to 264,802 in July, with BEV sales up 58%. In the UK, new car registrations declined 5%, although battery electric vehicle sales rose 9.1%, per the Society of Motor Manufacturers and Traders (SMMT).

The SMMT cited uncertainty surrounding EV grant eligibility as a cause for buyer hesitation.