Volkswagen surpassed Tesla in fully electric vehicle sales in Europe in 2025, according to data from JATO Dynamics, marking another blow for the US automaker after China’s BYD overtook it as the world’s leading EV manufacturer last year.
JATO says that the sales of Volkswagen brand battery electric vehicles (BEVs) in Europe rose 56 percent last year versus 2024 led by strong sales of its new ID.7. Registrations of Tesla cars, on the other hand, dropped 27 percent in the same period.
Volkswagen sold 274,278 BEVs in Europe last year while Tesla sold 236,357, according to JATO data.
Tesla’s small, ageing car lineup faces tough competition in Europe from both traditional European automakers and a rising number of Chinese rivals.
The company also faced a consumer backlash in Europe over CEO Elon Musk’s backing of far-right parties on the continent.
EVs made a "significant step forward" in Europe in 2025, JATO Dynamics said, with fully-electric car registrations jumping 29 percent compared to the previous year.
Overall car registrations grew by just 2.3 percent in 2025, the data showed.
The report included data from 28 European countries, including non-EU members Norway, Switzerland and Britain, but excluding Bulgaria and Malta.
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The shifting competitive landscape underscores how rapidly Europe’s EV market is maturing, with scale, model diversity and brand perception becoming decisive factors.
As legacy automakers accelerate electrification and Chinese players expand their footprint, investors are increasingly focused on which manufacturers can sustain growth, protect margins and justify their valuations in an intensifying global race.