In a historic development for the European electric vehicle industry, Chinese automaker BYD beat Tesla in sales for the first time. Trendy market research firm JATO Dynamics found that BYD sold 7,231 battery electric vehicles (BEVs) in Europe last month, just one unit above Tesla’s total.
This is an important step for China’s crowded EV market, with Tesla having been dominant for some time and BYD only recently joining. Tesla has remained a leading brand for years, but only within the past year has BYD expanded to countries beyond Norway and the Netherlands.
Felipe Munoz, an analyst with JATO Dynamics, pointed out that the increase in Chinese EV makers in Europe is threatening to replace Western brands as leaders.
China’s EV Surge in Europe
The growth of BYD is mainly due to the surge in demand for electric vehicles in Europe. There were 28% more BEV registrations this April than last year’s April. Chinese carmakers led the charge by having BEV registrations rise by 59% from the same period last year.
The rise in EV sales in Europe is happening despite the EU imposing a tariff on Chinese-made EVs to stop the support that Chinese cars receive from their government. These rules have not stopped the rising trend of Chinese electric cars.
Tesla Faces Headwinds
Meanwhile, Tesla is experiencing several difficulties that are weakening its position as the number one. The first quarter of 2025 saw a 13% drop in global deliveries for the U.S. automaker, and it is predicted to announce another yearly fall, a first since joining the top automakers in the world of EVs.
A main difficulty for Tesla is that many of its cars are outdated. Because Tesla isn’t making many changes to its core models, some buyers are switching to cars from BYD, NIO, and XPeng.
Furthermore, the political opinions of Elon Musk, CEO of Tesla, are causing more people to take action in both America and parts of Europe. It looks like the controversy is affecting the public’s views and, as a result, vehicle sales.
Tesla’s decline has been made worse by issues that cause production to stop. The manufacturer stopped producing some models to prepare their factories for making the new Model Y crossover, its top-selling vehicle. Even if the upgrade is supposed to help, the system changes are only available to some users and are taking a long time to be delivered.
Plus, analysts think many customers would rather wait until a cheaper version of Model Y is available which is contributing to slower growth for Tesla.
Steady EV Demand Signals Changing Market Dynamics
DespiteTesla’s trouble, interest in electric vehicles in Europe is continuing to grow. As more consumers value being environmentally friendly and the government makes stricter rules for emissions, electrification is becoming more popular.
According to the most recent data, European, Japanese, South Korean, and American companies’ EV sales saw a solid 26% boost over the previous year, but Chinese automobiles sold more than double, growing by 59%.
