In 2025, Volkswagen achieved a major breakthrough in Europe's all-electric vehicle (BEV) market, selling 274,278 units—a 56% year-over-year increase—surpassing Tesla for the first time. Tesla sold 236,357 units in the same region, a 27% decline compared to the previous year. Volkswagen’s growth was primarily driven by the strong performance of its new ID.7 model. During the same period, total BEV registrations across Europe rose by 29%, significantly outpacing the overall car market’s modest 2.3% growth in registrations. Data shows Tesla’s market share in Europe continues to shrink, mainly due to its aging model lineup and intensifying competition. Additionally, CEO Elon Musk’s political remarks have prompted some consumers to boycott the brand. Meanwhile, BYD secured the title of global BEV sales champion in 2025, thanks to its extensive global footprint. Tesla reported a 3% year-over-year decline in annual revenue—the company’s first-ever annual drop in revenue.