Tesla Inc. continues to post steep sales declines in Europe, where the Elon Musk-led automaker is ceding significant share to China’s BYD Co.

Tesla faces an uphill battle if it wants to stop the bleeding in Europe and retain its dominant market share. Unlike in the US, where the brand doesn’t have to deal with the threat posed by Chinese automakers, a growing number of EVs from China are flooding European shores, more often than not offering better features for lower prices.