China’s BYD (BYDDY) hit another big milestone — with rival Tesla (TSLA) receiving another piece of bad news.
In April, BYD’s battery electric vehicle (BEV) registrations topped those of Tesla in Europe for the first time.
Per research firm JATO Dynamics, Tesla BEV registrations came in at 7,165 units, with BYD narrowly beating Tesla with 7,231 units. Crucially, Tesla BEV sales in April tumbled 49% in Europe, while BYD’s surged 169%.
Registrations are used as a proxy for sales since Tesla does not break out monthly or regional sales. Despite the news, Tesla shares closed up nearly 2% on Thursday.
“Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous,” JATO Dynamics global analyst Felipe Munoz said in the report. “This is a watershed moment for Europe’s car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022.”
Tesla’s recent struggles in Europe are not an industry secret. Earlier data showed Tesla registrations also fell in key countries, including France (down 59%), Denmark (down 67%), Sweden (down 81%), the UK (down 62%), and Germany (down 46%).
Demand weakness in the EU and recent protests at US Tesla showrooms follow CEO Elon Musk’s foray into politics, causing some Tesla owners to become alienated by Musk, his right-leaning tendencies, and his outward support of President Trump.
Musk admitted to the weakness at the Qatar Economic Forum earlier this week: “Europe is our weakest market.”
But what is new is BYD’s surge in Europe, where the Chinese company’s vehicles, both BEV and hybrid, are resonating with buyers, even with the addition of tariffs. The EU imposes 10% tariffs on BYD vehicles, with an additional 17% for BEVs.
BYD BEVs are not the only non-Tesla vehicles selling well in the EU. Legacy automakers like Volkswagen (up 61%), BMW (up 5%), and Audi (up 48%), among others, are showing big gains in BEV sales.
“While the electric vehicle segment was a bright spot for Europe’s new passenger car market last month, these gains were offset by significant declines among ICE vehicles,” Munoz noted.
Across powertrains, JATA reported BEV and plug-in hybrid electric vehicles (PHEVs) combined accounted for 26% of new car registrations in Europe — a new record — with Chinese brands behind much of this growth.
BEVs accounted for 17% of this total, up from 13.4% in April 2024. Plug-in hybrids represented 9% of monthly registrations, up from 6.9% a year ago.
BYD’s onslaught in Europe may just be beginning. The company intends to build a factory in Hungary, which would alleviate tariff exposure, and the company just announced it plans to bring its bestselling EV to Europe, dubbed the Dolphin Surf, which will start around $26,000.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here
Read the latest financial and business news from Yahoo Finance
