Tesla sales plummet – Chinese electric car manufacturers are overtaking

Tesla is facing a severe sales slump in early 2025. In Europe, sales have almost halved in a year, and similar signs are visible in the US and China. At the same time, Chinese electric car manufacturers are storming ahead and are now surpassing Tesla in both revenue and deliveries. The development has shaken Tesla's share price and raised questions about competition, demand and Elon Musk's impact on the brand.

Tesla loses ground in Europe – sales halved

Tesla's dominance in the European electric car market is in sharp decline. At the beginning of the year, sales fell by almost 50 percent compared to the same period the previous year, reports SVTAt the same time, overall electric car sales in Europe increased, meaning Tesla isn't just selling fewer cars—the company is also losing market share rapidly.

In countries such as Germany, France and Sweden, the decline has been particularly pronounced, with sales falling between 40 and 75 percent. In the UK, Chinese BYD has now overtaken Tesla as the best-selling electric car manufacturer.

Tesla's sales also plummet in the US and China

Tesla's sales are also declining in the US. Market share has dropped significantly compared to the previous year, and competitors such as Ford and GM are growing rapidly. At the same time, a growing backlash against Elon Musk has led to protests, boycott campaigns and negative publicity.

In its important Chinese market, Tesla is under pressure from local players such as BYD and Nio. Sales have fallen sharply, and Tesla has been forced to make major price cuts to try to attract customers back. Despite this, the company continues to lose ground in China.

Chinese electric cars overtake Tesla globally

BYD, China's largest electric car manufacturer, has now overtaken Tesla in both revenue and number of vehicles sold if plug-in hybrids are included. Even for fully electric cars, the difference is small – and in the fourth quarter of 2024, BYD sold more electric cars than Tesla globally.

In Thailand, Southeast Asia's largest EV market, Chinese manufacturers dominate sales. BYD was the country's top-selling EV manufacturer in 2023, offering models like the Atto 3 and Dolphin at significantly lower prices than Tesla's Model 3. In several other Asian countries, the same pattern is repeating itself: Chinese cars are quickly gaining ground with cheaper prices and locally adapted solutions.

Tesla's share price falls - investors worried

Tesla's share price has lost over a third of its value in early 2025. On several days, the stock has fallen by up to 8 percent after weak sales figures, and analysts are concerned that growth is slowing.

Tesla has been forced to cut prices and offer discounts – something that was unthinkable just a few years ago – and this is affecting the company's profitability. At the same time, there is no news of a new, cheaper Tesla model, and the current model range is starting to be perceived as old.

Why is Tesla losing money? Four underlying reasons

1. Increased competition
   Tesla now faces stiff competition from Chinese manufacturers, established automakers, and new entrants offering cheaper or more locally adapted models.
2. Outdated model range
   Tesla hasn't launched any brand new volume models in years. Many consumers are waiting for a new, cheaper model, which hasn't been launched yet.
3. Economic factors
   Increased interest rates, inflation and reduced subsidies in several countries are making electric cars less attractive to price-conscious customers.
4. Elon Musk's influence
   Elon Musk's political statements, presence on X (formerly Twitter), and his actions on controversial issues have had negative consequences for Tesla's brand – especially in Europe and the US.

What does this mean for Thailand and the region?

For markets like Thailand, this is a clear signal that China’s electric car companies are now playing in a league of their own. With affordable models, aggressive expansion and local production, Chinese brands are quickly gaining trust in Asia. At the same time, Tesla’s loss shows that no brand is immune to regional preferences and political winds.

The development is also interesting for investors and technology enthusiasts: the future of electric cars is no longer decided solely in the US – but in Asia.

Text: The editorial staff

Image license: phrases-canv, Pixabay, original image