Tesla’s (TSLA) dominance in Europe is fading fast. In July 2025, its sales in France plunged nearly 27%—one of its steepest monthly declines yet. Once an EV frontrunner, Tesla is now clearly struggling to keep up. Chinese competitors like BYD (BYDDY) are racing ahead, and local automakers are also pushing back hard.
What once felt like unstoppable momentum, Musk’s Tesla has turned into a scramble to retain market share. Europe’s EV market is now the most competitive in the world, and Tesla is feeling the heat.
A CNBC report highlighted that,
“Data published by the U.K.’s Society of Motor Manufacturers and Traders (SMMT) showed Tesla’s new car sales dropped by nearly 60% to 987 units last month, down from 2,462 a year ago.”
Tesla’s European Market Share Continues to Shrink
According to the European Automobile Manufacturers Association, Tesla’s market share in the EU, U.K., and EFTA dropped to 2.8% in June, down from 3.4% the previous year.
The company sold 34,781 vehicles across the region that month, which is a 22.9% year-on-year drop. Also in July, its sales in France plunged by nearly 27%, marking one of its steepest monthly drops yet.
The above data tells that Tesla is facing severe headwinds across Europe, with sales falling in most major markets despite the launch of an updated Model Y. According to Reuters, Tesla’s new car registrations in:
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Sweden fell 86%
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Denmark dropped 52%
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Netherlands sank 62%
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Belgium declined 58%
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Italy slipped 5%
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Portugal slid 49%
The only bright spots were Norway and Spain, where Tesla saw gains of 83% and 27%, respectively. Norway’s spike followed the rollout of 0% interest loans on Tesla models, while Spain’s surge coincided with a 155% jump in sales of all electrified cars.
The chart below also tells us that Tesla is losing ground in Europe.

Model Y Revamp Fails to Lift Sales
Tesla had pinned hopes on its refreshed Model Y, which began selling in March 2025 in Europe. However, the update has failed to spark meaningful growth. According to analyst Felipe Munoz from JATO Dynamics, the updated Model Y “has so far failed to provide the expected sales boost.”
Even in Tesla-stronghold Sweden, Model Y registrations fell 88% in July. In Denmark, they dropped 49%. By contrast, Norway saw a resurgence, with Model Y registrations jumping fourfold to 715 units due to financing incentives.
Here’s how Tesla (TSLA) performed in Q2 2025.

- SEE DETAILS: TSLA Stock Drops on Weak Q2 2025 Earnings: Tesla Faces Carbon Credit, Margin, and Political Risks
Pricing Strategy and Margins Under Pressure
To stay competitive, Tesla has slashed prices across Europe, often undercutting its margins. In France, the company’s market share fell from 1.6% in 2024 to just 0.9% in 2025, with buyers turning to local brands like Renault, which outsold Tesla’s Model Y with its new Renault 5 model in June.
Aggressive discounting might stimulate demand in the short term, but it signals waning pricing power, a worrying trend for a brand that once commanded premium status.
Tight Rules Stall Tesla’s Self-Driving Push in Europe
Another pain point for Tesla in Europe is the region’s strict autonomous driving regulations. While Tesla’s supervised self-driving feature is a major selling point in the U.S., it’s not fully available in many European countries due to tighter rules.
Musk acknowledged in July that the company could have “a few rough quarters” ahead as it waits for approvals and ramps up production of a new, more affordable EV model.
Tesla’s efforts to diversify include a trial robotaxi service in Austin, Texas, using autonomous Model Y vehicles. However, this program is not yet authorized for widespread deployment in Europe.
BYD Steals the Spotlight in Major European Markets
While Tesla stumbled, Chinese EV giant BYD roared ahead. In Spain, BYD sold 2,158 cars in July, nearly 8X more than the same month last year.
- In the UK, BYD registered 3,184 vehicles, quadrupling its year-over-year numbers. And in Germany, BYD posted a 390% increase in July sales.
BYD’s affordability, growing dealership network, and product variety have helped it attract European buyers seeking alternatives to Tesla.
- Notably, BYD overtook Tesla in overall European EV sales as early as April 2025, a trend that now looks firmly established.

Smart Pricing, Sharp Growth
BYD’s strategy of affordable pricing and rapid expansion is paying off. Models like the Dolphin Surf (globally known as the Seagull) and the Seal U are leading the charge. The Seal U tied as Europe’s best-selling PHEV in June.
Looking ahead, BYD plans to expand into 12 more European countries by the end of 2025. The company is also preparing to launch local production in Hungary, helping it reduce costs, navigate EU tariffs, and better compete with local and global rivals.
Chinese Brands Make Their Mark
The impact goes beyond BYD. Chinese EV makers, led by BYD, have nearly doubled their collective market share in Europe — from 2.7% in early 2024 to 5.1% in the first half of 2025. This surge reflects the growing influence of Chinese automakers across the European auto market.
Broader EV Market Still Growing—But Tesla Lags Behind
It’s important to note that Tesla’s slump comes at a time when overall EV demand in Europe is still rising. In July:
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Denmark’s overall car sales rose 20%
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Sweden was up 6%
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Norway surged 48%
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Spain grew 17%
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Portugal jumped 21%
This makes Tesla’s performance look even worse in comparison. The EV pioneer is not suffering from market decline, but rather losing ground to faster-moving rivals like BYD, Volkswagen, and Renault.

Elon Musk’s Controversies Add Fuel to the Fire
Aside from market dynamics, Tesla is battling reputational damage, much of it tied to CEO Elon Musk. His endorsement of Germany’s far-right AfD party and anti-union comments sparked protests at Tesla showrooms across Europe.
The backlash has been especially strong in Germany, where labor unions and political parties wield significant influence. Tesla’s sales in the country dropped 55% in July, with only 1,110 units sold compared to 2,469 a year ago. From January to July, Tesla’s total German sales plunged 57.8% to just 10,000 units.
In Britain, Tesla’s July sales fell 60%, while BYD’s more than quadrupled.
Legacy Automakers Also Feel the Heat
Tesla isn’t the only automaker feeling the squeeze. European giants like Volkswagen, BMW, Mercedes-Benz, Stellantis, and Renault all posted weak Q2 results, citing falling demand and concerns over U.S. import tariffs.
However, these companies are still expanding their EV offerings and investing in local supply chains, unlike Tesla, which continues to rely heavily on exports and centralized production.
What Lies Ahead?
Tesla’s roadmap includes a more affordable EV model and the potential expansion of its Berlin Gigafactory’s output. But until production ramps up and autonomous features are approved in Europe, Tesla may continue to struggle.
In contrast, BYD and other Chinese players are gaining speed, price advantage, and regulatory momentum, making them serious threats to Tesla’s European ambitions.
Tesla’s 27% sales crash in France shows that the much-touted EV leader is on the defensive in a region once crucial to its global strategy. Concisely, unless Tesla adjusts its pricing, updates its lineup more frequently, and repairs its brand reputation, it may continue to lose ground to BYD and others.
The post BYD (BYDDY) Beats Tesla (TSLA) in Europe: The EV Shift No One Saw Coming appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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