Is this the beginning of the end for Tesla's electric car dominance? EV specialist loses first spot in Europe as established German marque overtakes, and it's not who you might expect

Is Tesla’s electric car sales dominance starting to falter?

The EV-only brand has traded on low prices, slick technology and disruptive products but it has been outsold by a surprising brand for the first time in Eruope.

And it isn’t by some Chinese newcomer like BYD or Xpeng but BMW which sold 14,869 new electric cars across Europe in July — 308 more than the American EV-specialist.

Volkswagen managed third spot (12,213) followed by Volvo (10,533) according to data provided by analysts JATO Dynamics. 

It helps that Tesla experienced a sales slowdown last month in Europe, with Model Y and Model 3 sales down 16 and 17 per cent, respectively. 

BMW’s success has not come from a single model, or even a dedicated platform, but from a diverse strategy selling electric and combustion models alongside each other in a broad range of segments. 

2024 BMW i4

The highest placed electric car from BMW was the iX1 small SUV followed by the i4 passenger car in sixth and seventh spot. Individually, the Tesla Model Y, Volvo EX30, VW ID.4, Tesla Model 3 and Skoda Enyaq all outsold BMW’s best sellers. 

Tesla’s two-strong Model Y and Model 3 offering leaves it exposed to changes in market conditions. The fluctuations have played out overseas and in Australia before. 

BMW bucked the trend for electric car sales in Europe, which are down 6.0 per cent this year. Jato Dynamics attributed this to a combination of cut-back government incentives and resale value concerns.

Compared to price competitors Audi (8618) and Mercedes-Benz (8365), BMW’s strategy has put it a long way ahead in Europe. It is a similar story in Australia, where BMW is the country’s third most popular electric car seller behind Tesla and BYD. 

2024 BMW iX1

Speaking to CarsGuide earlier this year, BMW Australia Head of Product and Market Planning Brendan Michel provided insight into the marque’s local strategy, including that the sub Luxury Car Tax (LCT) for six of its models were crucial to success, with remarkably low prices achieved with assistance at a factory level.

“Looking back we went into this with a view: let’s see what we can do, let’s see how many we can achieve [below the LCT threshold] and we’ve ended up with six. Which, when you look at what other OEMs are doing at the moment, it’s a very aggressive stance from us.

“We’re not here to just make up the numbers, we’re here to be the numbers”, Michel emphasised.