BYD ranks eighth in positive brand movement, while Tesla sits around 50th, reflecting growing competition and shifting perceptions.

Escalent’s Europe-wide data show Tesla’s appeal among new-car buyers fading, with sentiment turning negative and about one in three buyers viewing Tesla as mainstream rather than premium.

The study highlights a shifting perception landscape as European buyers increasingly favor Chinese automakers and see Tesla as less ahead of competitors.

The finding that one in three European buyers now considers Tesla mainstream underscores a risk to Tesla’s European leadership and premium positioning.

Analysts urge traditional automakers to accelerate beyond electrification with bold, innovative products and true technological and design leadership to justify premium pricing amid rising Chinese competition.

Chinese brands such as BYD, Zeekr, and Leapmotor are closing gaps in innovation, software, and design, often matching or exceeding European cars at lower prices.

These Chinese brands are narrowing the gap on innovation and quality, frequently outperforming European rivals in technology, software, and design at more competitive prices.

The study finds that Chinese ownership of European brands slightly reduces interest, but interest rises when new Chinese brands are introduced and their origin is disclosed, with 42% of consumers saying Chinese ownership doesn’t matter if product quality is strong.

Trust in China-made BEV brands is rising, with consideration among European buyers jumping from 31% to 47% year over year in 2025.

Overall trust in Chinese brands climbed from 22% in 2024 to 28% in 2025, signaling stronger acceptance of Chinese EV makers like BYD, Zeekr, and Leapmotor.

Tesla remains ahead in charging infrastructure and speed but trails competitors in design, quality, and emotional appeal, with about a third of buyers saying it isn’t as far ahead as before and 26% viewing its products as less competitive.

Continued strength in charging remains, but concerns about design, quality, and emotional appeal are contributing to a more competitive European landscape.

Escalent’s Mark Carpenter warns that Tesla’s progressive badge is slipping in Europe, and European automakers must respond decisively with bold, innovative products and genuine leadership to sustain premium pricing.

Carpenter emphasizes the risk of Tesla becoming seen as uninspiring, urging European rivals to act decisively amid electrification, new business models, and shifting consumer expectations.