/ December 23, 2025 Recent European vehicle registration data reveals a significant shift in the competitive landscape for electric vehicles, with Chinese automaker BYD making substantial inroads. While its growth trajectory is impressive, the company faces headwinds from declining profitability, painting a complex picture for investors. European Registrations Show Dramatic Shift According to the latest figures from ACEA covering the EU, EFTA, and the UK for November, BYD’s growth is accelerating at a remarkable pace while Tesla’s registrations have contracted. BYD November Registrations: 21,133 vehicles, representing a year-on-year surge of 221.8%. Tesla November Registrations: 22,801 vehicles, marking an 11.8% decline compared to the previous year. November Market Share: BYD captured 2.0% of the market, closely trailing Tesla’s 2.1%. This data indicates the gap between the two manufacturers in Europe nearly vanished in November. The trend is even more pronounced over the first eleven months of the year (January to November 2025). During this period, BYD registered 159,869 vehicles—a staggering 276.0% increase—while Tesla’s registrations fell 28.0% to 203,382. Focusing solely on the EU in November, BYD’s registries jumped 235.2%, whereas Tesla’s dropped by 34.2%. Although BYD’s total volume remains behind Tesla’s, its rapid expansion from a much smaller base is undeniable. Profitability Pressures and Strategic Adjustments The financial narrative for BYD is mixed. On one hand, the company is aggressively pursuing international expansion, particularly in Europe. Concurrently, it has revised its global sales target for 2025 downward by 16%. To counterbalance this, BYD plans to double its export volume of electric and plug-in hybrid vehicles, a goal aligned with its strong European performance. However, margin pressure is evident. The company’s most recently published earnings showed a profit decline of 32.6% compared to the prior year. This squeeze is attributed to rising costs, intense price competition, and substantial investments required for new market entry. The stock’s performance currently reflects this tension between rapid international growth and significant profitability challenges in its domestic market.