American electric car giant Tesla saw a sharp decline in sales in Europe's two largest car markets in July. This is according to data from the Society of Motor Manufacturers and Traders (SMMT) and Germany's KBA.

New car registrations fell by about 60% in the UK and by over 55.1% in Germany, the data shows.

The company sold only 987 cars in the UK, compared to about 2,462 a year earlier, and 1,110 in Germany, the Anadolu Agency reported.

At the same time, Chinese electric vehicle giant BYD saw growth in both markets. Sales in the UK increased by 390% to 3,184 cars, while in Germany, BYD registrations increased almost fivefold to 1,126 in July.

Despite overall growth in the electric vehicle market, sales of all-electric vehicles in Germany jumped 58% to 48,614 units, while the UK market grew 9.1% — Tesla lost a significant portion of its market share in the region.

The latest data confirms a regional decline in sales for Elon Musk's company, which continues to face strong competition, particularly from Chinese electric vehicle manufacturers, as well as damage to the brand due to Musk's controversial statements and his ties to the Trump administration.

The negative reaction may be felt more strongly in Europe, as evidenced by the sharp decline in Tesla sales in the region in the first half of the year.

Data from the European Automobile Manufacturers' Association shows a 43.7% drop in sales in the first six months of the year compared to the same period last year.

Tesla also lost market share in Europe for the sixth consecutive month in June. | BGNES