Tesla's sales in Europe declined for the seventh consecutive month, dropping by 40% in July with only 8,837 vehicles sold amid rising overall electric vehicle sales. Meanwhile, Chinese competitor BYD experienced a 225% surge, with 13,503 registrations fueled by aggressive expansion, new showrooms, and competitive pricing. Tesla faces hurdles such as aging models, reputational issues, and increased Chinese competition, while planning a new lower-cost EV to regain market momentum.