While Tesla long embodied the progressive vision of the electric vehicle, that image has weakened. Elon Musk's political stances, his support for Donald Trump, and his repeated interventions in European public debate have alienated a segment of buyers.
China elicits other reservations. These concern data protection, indirect support for an authoritarian industrial model, and, for the most fervent defenders of the European economy, the need to preserve a strategic automotive sector for the continent.
These concerns exist, but their actual weight in purchasing decisions remains uncertain. Late last year, a Global EV Alliance survey of over 26,000 EV drivers across 30 countries indicated that 41% of respondents were reluctant to buy a Tesla for political reasons. Only one in ten respondents rejected Chinese-made cars.
The Chinese offensive remains difficult to contain
Despite the tariffs imposed by Brussels since October 2024 on electric vehicles produced in China, Chinese manufacturers are progressing rapidly in Europe. According to Rhodium Group, Chinese-made vehicles accounted for 9.3% of sales in the European Union and 20.6% in the UK in December.
For FY 2025, Chinese passenger car exports to Europe reached 922,000 units, up 29% y-o-y. In the first two months of 2026, they surged a further 62%.
This growth is built on a combination that is difficult to counter: industrial overcapacity, a price war in the domestic market, a weak yuan against the euro, a virtually closed US market, and lower production costs. In this context, Europe has become a natural priority for Chinese brands.
Rhodium Group notes that battery cells cost approximately 30% less to produce in China, while the International Energy Agency estimates that a small EV costs nearly $10,000 less to manufacture in China than in Germany. Even with tariffs, the price advantage remains considerable.
To counter this momentum, the EU is attempting to move beyond a purely tariff-based logic. Introduced this spring, the Industrial Accelerator Act aims to link public subsidies to local content criteria.
The objective is to prevent European public funds from indirectly subsidizing vehicles imported from China, while also ensuring that cars assembled in Europe do not remain heavily dependent on Chinese batteries, motors, or components.
The primary lever involves corporate fleets, which represent about 60% of new car sales in the European Union and often serve as a decisive entry point for new manufacturers. However, the mechanism risks arriving late, as its main measures are not expected to take effect before 2027 or even 2028.
The position of European manufacturers
As Europe accelerates its exit from internal combustion engines, the two global benchmarks for electric vehicles, Tesla and BYD, each present issues for a segment of public opinion. European alternatives finally exist, but they are operating in a constrained environment, caught between Tesla's software lead, the Chinese offensive on price and technology, and industrial inertia in Europe.
Volkswagen reclaimed the top spot from Tesla in terms of EV sales on the continent in 2025 with a 56% increase, while Tesla declined by 27%. However, Tesla's Model Y and Model 3 remained on the podium of the best-selling EVs in Europe in February.
Behind them, Skoda (Volkswagen) and Renault represent two credible responses to Chinese pressure. Skoda is banking on the price-performance ratio of its Elroq and Enyaq models. Renault, with compact models like the Renault 5, is taking a different approach.
Positioned in the same segment as Tesla, BMW is executing the most aggressive transition. According to the ICCT, among Europe's seven largest automotive groups, BMW Group showed the highest share of EVs in its registrations for January-February 2026, at 24%.
Tesla has indeed suffered recently in Europe, hampered by a lack of new models and the political posturing of its figurehead. Yet the brand remains powerful, technologically distinct, and still central to its primary markets.
For Chinese manufacturers, mistrust exists, but it often carries less weight than the price argument. BYD is currently the fifth-largest group in terms of market share on the continent, but its meteoric growth suggests an improving position.
Despite evolving regulations, many European manufacturers remain dependent on China for numerous components. Any industrial strategy must therefore account for the risk of a Chinese counter-offensive. In this landscape, buying European cannot rely solely on the rejection of Tesla or China. It requires a credible offering capable of convincing on price, quality, technology, and image. Only under these conditions can European manufacturers transform the ethical argument into a genuine market choice.
