Right now is a good reminder that while Tesla CEO Elon Musk is about to ask his shareholders for a trillion-dollar pay package, his car company is getting smoked pretty much everywhere. Arguably, nowhere is that more evident and urgent than in Europe, where electric-vehicle growth continues despite the United States backsliding—and where Tesla's most potent rival isn't backing off.
Welcome back to Critical Materials, our morning roundup of industry and technology news, coming soon to your inbox as well. Make sure to sign up here for email updates. On today's docket: BYD's European surge continues at Tesla's expense, BMW has some good news on the EV front, and Rivian's Q3 earnings had plenty of rough news mixed with reasons for optimism. Let's dig in.
30%: BYD Moves On Tesla In The UK And Germany
When I took the reins here at InsideEVs two years ago (which, given everything that's happened in the auto industry since, feels like 50 years) I was adamant that EV publications like ours should cover much more than just Tesla. That was the norm in this space for a long time, but the industry's electrified transformation is much bigger than just one brand.
But let's face it: Tesla's still the EV sales leader in the U.S. and abroad. Its market share may be sliding, but it remains a dominant force. So any attempts to unseat Tesla, successful or otherwise, can speak volumes about where the space is going.
Evidently, in Europe, where EV buyers are going is their BYD dealership. Bloomberg reports today that the rising Chinese auto giant, now the largest maker of EVs and plug-in hybrids globally, has surpassed Tesla in the United Kingdom and is within firing distance in Germany. From that story:
In the UK, the Chinese manufacturer registered almost seven times more new cars than its American counterpart last month, the country’s automotive trade group said Wednesday. Year-to-date, BYD’s sales have soared more than sixfold, while Tesla’s have slipped 4.5%.
In Germany, BYD registered more than four times as many vehicles as Tesla in October, according to the Federal Motor Transport Authority. Through the first 10 months of the year, BYD trails by only 424 cars.
BYD’s rise has been meteoric in both markets. The company registered only 8,788 cars last year in the UK, which overtook Germany as Europe’s top market for fully electric vehicles. Tesla outsold the company by an almost 6-to-1 margin.
Tesla's European sales have been sliding for more than a year now, both on the heels of intensified competition (especially from, it must be said, Volkswagen) and the backlash to Musk's vocally right-wing politics.
But one player was never destined to have the EV market to itself. The bigger story here is BYD's rapid expansion, including with more local car and battery factories and tailoring its products to different markets—just like its new kei car in Japan or the PHEV Seal wagon for Europe, pictured above. And it's not slowing down.
Musk had better hope his shareholders really believe in those robots tomorrow.
60%: BMW Profit Margins Up, Big Investment Phase For 'Neue Klasse' EV Ends
After all, Europe's car market hasn't exactly been some huge growth engine lately. Sales across the board have slowed and the established local players have struggled with emissions regulations, EV investments, high labor costs, U.S. tariffs and other challenges. That's why it's good news for the region that BMW posted an increase in its core profit margin, and that the heavy investment phase for its Neue Klasse EV platform is over.
And no, that doesn't mean it's not spending on EV development. It means that with the new BMW iX3 on the way and a BMW i3 sedan coming soon after, the time has arrived for sales and execution, and BMW officials seem optimistic about both: More from Reuters:
The results were a bright spot in another difficult quarter for Europe's automakers, as they face a new reality of high U.S. tariffs and cheap Chinese competition, with a looming chip supply crunch potentially bringing more uncertainty.
The group expects the first model from the all-electric "Neue Klasse" series to drive growth in 2026, adding it had "transitioned" from last year's record investment in its EV portfolio. In Europe, orders for the iX3, the debut model of the new series, extend several months into 2026, Zipse said. The pricing for the model had not been set yet for the highly competitive Chinese market, he said.
"We believe that BMW's Neue Klasse offers a compelling way to play the sector. In our view, we are on the eve of one of the most comprehensive transformation stories we see in our coverage," analysts at Bernstein said.
Senior Editor Tim Levin is off to drive the iX3 soon and hear more about BMW's upcoming EV plans, so stay tuned for more.
90%: Rivian's Q3 Reflects Growing Pains, Optimism
We covered some of Rivian's big announcements as part of its Q3 earnings call last night: a move into the robotics space, new details about the launch of the more affordable R2 and why the EV startup won't get into the extended-range hybrid game. Here, let's recap the numbers themselves.
Overall, this was a tough quarter, with losses growing to $1.2 billion, about half a billion off what it lost in the entire first half of 2025. On the plus side, revenue went up. Deliveries rose as customers surged to take advantage of the EV tax credit before it went away, and it now thinks that some tariff relief from the Trump administration (which, of course, instituted those tariffs in the first place) means it'll only pay a few hundred dollars extra per vehicle, not thousands as before.
Long-term, the company's hopes ride on the Rivian R2 being a hit. More from Automotive News:
On the company’s earnings call, CEO RJ Scaringe said the surge in EV sales last quarter caused an expected “softer demand environment” in October across the industry.
But Rivian, he said, is looking at the longer-term horizon for EV demand and expects the company will have a winner with its R2 midsize crossover next year.
“Ultimately, customers are going to be making decisions around what’s the best product for them,” Scaringe said. “We need to build the best vehicles and give customers great choices.”
The stakes are high for that crossover.
100%: Would You Buy A BYD If You Could?
We have a good many readers in places like Europe and China, so they may answer that question by saying "I already can" or even "I already did." But the miracle that is Google Analytics tells us that more than 50% of InsideEVs readers are U.S.-based, and at least for now, buying a BYD isn't an option for us.
But if you could, would you consider it? I've only ever driven two of them—in China and very briefly—and I found them to be quite impressive. And the Seal's a handsome electric sedan. Yet plenty of American buyers would still be trepidatious about a Chinese car company.
What do you think of BYD, especially compared to your other choices in the U.S. EV and hybrid market? Drop your thoughts in the comments.
Contact the author: patrick.george@insideevs.com
