According to Business Insider, in April 2025, Tesla suffered a waterloo in the UK market, selling only 512 vehicles, a sharp decline from more than 1,300 in the same period in 2024. Behind this data is the dilemma and challenges faced by Tesla in the UK and even the entire European market, while at the same time, Chinese brands such as BYD and Chery have emerged in the European market and become a new focus, which is worth further exploration.
1. Musk's political stance backlash: brand image damage
Tesla CEO Elon Musk's political stance has become one of the key factors affecting its UK sales. His public support for right-wing policies in the United States and far-right forces in Europe has sparked a backlash among European consumers. In Europe, people are extremely sensitive to political positions and values, and the car is not only a means of transportation, but also a manifestation of values. Musk's actions were seen as a challenge to European social values, which caused Tesla's brand image to plummet.
According to the Pew survey, Musk's support rate among fuel car users is higher than that of the electric vehicle group, highlighting the negative impact of his political stance on Tesla's electric vehicle user base. Since April, in Rome, Berlin and Stockholm and other European cities, dozens of Tesla cars have been burned, showrooms have been spray-painted, and German Chancellor Olaf Scholz has publicly condemned Musk for "endangering democracy".
Figure: Tesla's UK sales failed miserably, and BYD, Chery and others became new favorites in Europe
2. Lack of product competitiveness: aging models and market squeezing
From the point of view of the product itself, Tesla's current model series is gradually exposing the problem of aging. Major models such as the Model Y are facing strong squeeze from brands such as BYD and Volkswagen in the European market. Taking BYD as an example, it sold 2,511 vehicles in the UK in April 2025, a year-on-year increase of 650%, while Chery's Jaecoo and Omoda, since their launch in the UK last year, sold 1,053 and 910 cars respectively in April this year, and they sell a variety of models, including electric vehicles, hybrid vehicles and fuel vehicles, with a richer and more diverse product line to meet the needs of different consumers.
In contrast, Tesla only sells electric vehicles and is relatively monolithic in its product selection. In addition, the deep accumulation of these Chinese brands in battery technology, intelligent driving and other fields makes their products not inferior to Tesla in terms of performance, safety and intelligence, and even more advantageous in some aspects. For example, BYD's blade battery technology not only improves the energy density and safety of the battery, but also extends the life of the battery, bringing consumers a more reliable experience. Chery's Jaecoo and Omoda are featuring off-road style SUVs and new-generation hardcore trendy sports SUVs respectively, satisfying consumers' pursuit of fashion, individuality and cost-effectiveness, and quickly gaining a foothold and expanding their share in the European market with their rich product portfolios and cost-effective advantages.
3. EU policy assistance: a catalyst for the rise of local brands
The European auto market is becoming increasingly competitive, and countries such as the United Kingdom and Norway have stimulated the development of local brands through tax incentives and subsidies, which has weakened Tesla's market competitiveness to a certain extent. The EU's policy support for new energy vehicles aims to promote the electrification transformation of the automotive industry and reduce the dependence on traditional fuel vehicles to achieve the goal of carbon neutrality. However, the impact of these policies on local and foreign brands is different.
Local brands can make better use of policy dividends and obtain more financial support and technology R&D resources, thereby accelerating product upgrading and market promotion. As a foreign brand, Tesla, although it has a high reputation and technical strength in the world, its advantages have been weakened to a certain extent with the support of EU policies. At the same time, many auto brands have increased their investment in the European market, and traditional car companies such as Volkswagen have accelerated their electrification transformation and launched a series of competitive electric models, further squeezing Tesla's market share. In April 2025, although the overall UK car market is on a downward trend, the electric vehicle segment has risen against the trend, with pure electric vehicle sales reaching 24,558 units, a year-on-year increase of 8.1%, and the market share rising to 20.4%, while Tesla has not been able to fully benefit from this growth trend, but sales have fallen sharply, highlighting its dilemma in the European market competition.
4. The rise of Chinese car companies: the demonstration of cost performance and technical strength
The rise of Chinese automakers in the European market has become an important force to be reckoned with in this event. Chinese brands represented by BYD and Chery have quickly gained a foothold in the European market and expanded their market share by virtue of their deep accumulation in battery technology, intelligent driving and other fields, as well as their rich product portfolio and cost-effective advantages. BYD's blade battery technology provides its electric vehicle products with longer range and higher safety, while Chery's Jaecoo and Omoda feature off-road style SUVs and new-generation hardcore trendy sports SUVs respectively, meeting the needs of different consumer groups for fashion, intelligence and cost-effectiveness.
The rise of Chinese auto companies is not only the success of their products, but also the embodiment of the accelerated development, transformation and upgrading of China's auto industry in the process of globalization. Chinese automakers have made remarkable progress in the field of new energy vehicles by continuously increasing R&D investment and improving their technological level and innovation capabilities. At the same time, Chinese automakers also pay attention to brand building and marketing, actively expand overseas markets, and enhance brand awareness and market influence through cooperation with local dealers and partners. In the European market, Chinese car companies have won the recognition and favor of consumers with their cost-effective products and high-quality services, and have gradually become one of the important choices for European consumers to buy new energy vehicles.
5. Tesla's Future: Challenges and Opportunities
Tesla's declining sales in the UK and even in Europe as a whole is undoubtedly a major challenge in its development process. However, this does not mean that Tesla has no chance of turning around. In order to reverse the decline in the European market, Tesla needs to work on multiple fronts. First of all, at the product level, we will accelerate the pace of product upgrading and launch more innovative and competitive models to meet the continuous upgrading needs of European consumers for new energy vehicles. For example, Tesla can increase investment in battery technology research and development, improve battery energy density and charging speed, reduce battery costs, and improve the range and cost performance of products.
Secondly, in terms of brand building, Tesla needs to re-examine and adjust its brand strategy to avoid further damage to the brand image due to Musk's personal political stance and other factors, and strive to rebuild Tesla's positive image in the hearts of European consumers. Tesla can enhance its brand awareness and reputation by strengthening brand publicity and promotion, highlighting its technological innovation and environmental protection concept in the field of new energy vehicles. In addition, Tesla should also strengthen cooperation with local European companies, governments and other parties, actively integrate into the local market, and enhance brand awareness and market acceptance.
All in all, Tesla's UK sales failed miserably, and BYD, Chery and other new favorites in Europe reflected the profound changes in the competitive landscape of the global new energy vehicle market. In the European market, Tesla is facing strong challenges from Chinese brands as well as other traditional car companies. On the one hand, it highlights Tesla's problems and deficiencies in products, brands, and market strategies; On the other hand, it also provides valuable experience and reference for the development of emerging forces such as Chinese car companies in overseas markets. In the future, with the continuous development of the new energy vehicle market and the intensification of competition, major brands will face more opportunities and challenges. Whether Tesla can regain its strength in the European market and whether Chinese car companies can continue to expand their market share in the European market are worthy of our continued attention. The global new energy vehicle market will become more competitive, and technological innovation, brand building and market strategy will become the key factors that determine the success or failure of enterprises.
