Tesla Inc. (NASDAQ:TSLA) has continued its European sales decline, as the overall new car registration figure also fell in the region, while Chinese EV giant BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) reported sustained growth in the market.



<h2>New Car Registrations Fell 3.9%, BEVs Grew 13.9%</h2>



According to data released by the European Automobile Manufacturers' Association (ACEA) on Tuesday, new car registrations fell 3.9% in the European Union, while the overall European market fell 3.5% in January 2026. However, Battery Electric Vehicles (BEVs) charted a growth of 13.9% YoY in the overall market. EVs now account for 19.3% of the EU market share.



<h2>Tesla Falls, BYD's Momentum Continues</h2>



Meanwhile, Tesla's sales fell 17% YoY in the overall market during January, selling 8,075 units compared to last year's 9,733-unit figure. Tesla's market share accounted for 0.8%, 0.2% less than 2025 January's 1.0% mark.



In Europe during December, the Elon Musk-led EV giant recorded 35,280 sales, which were down 20.2% YoY from last year’s 44,190 units it sold in the region. The news comes as the company was targeting a February 2026 timeline to deploy its Full Self-Driving tech in the region.



On the other hand, BYD sold over 18,242 units in the region, a 165% increase from the 6,884 units the company sold in the market last year during January. BYD now accounts for 1.8% of the total market share in Europe.



BYD recently took the coveted title of being the world’s largest EV maker away from Tesla for the first time last year, illustrating its growing presence in the global automotive market. Chinese companies' rise in the auto sector has drawn concerns from industry leaders like Ford Motor Co. (NYSE:F) CEO Jim Farley, who is also an admirer of Chinese EVs.



<h2>Tesla, BYD’s Best-Selling Models</h2>



Tesla's Model Y was the best-selling EV in Europe during 2025, as well as the best-selling EV in the U.S. and the world last year, though the latter part was contested by Elon Musk's own artificial intelligence startup xAI's AI model Grok.



For BYD, the Song Plus and the Seagull or the Dolphin Surf, as it is called in the international markets, emerged as best-selling models for the Chinese automaker, according to data collected by Chinese online car marketplace Yiche.



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Benzinga Edge Rankings show that Tesla scores well on the Momentum metric and offers a favorable price trend in the Long Term.



Price Action: TSLA slid 2.91% to $399.83 at Market close on Monday, and further declined 0.96% to $398.87 during the pre-market session.



Check out more of Benzinga’s Future Of Mobility coverage by following this link.



Photo courtesy: Tada Images / Shutterstock

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Tesla's European sales fell 17% year-over-year in January, with 8,075 units sold, while overall new car registrations in the EU declined by 3.9%. In contrast, BYD reported a 165% increase in sales, reaching 18,242 units, capturing 1.8% of the market share. Tesla's market share decreased to 0.8%, down from 1.0% in January 2025. Despite Tesla's decline, its Model Y remains the best-selling EV in Europe. The overall market for Battery Electric Vehicles (BEVs) grew by 13.9%, now representing 19.3% of the EU market.

- Tesla Inc. experienced a 17% year-over-year decline in European sales, with 8,075 units sold in January 2026, while the overall new car registrations in the EU fell by 3.9%.  
- In contrast, Chinese EV manufacturer BYD Co. Ltd. reported a 165% increase in sales, totaling over 18,242 units, capturing a market share of 1.8%.  
- Meanwhile, Battery Electric Vehicles (BEVs) in the EU grew by 13.9%, now representing 19.3% of the market, as Tesla's market share decreased to 0.8%.

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Tesla Sales Fall 17% In Europe As New Car Registrations Decline Nearly 4%—BYD Continues Momentum With 165% Surge