Europe’s electric vehicle market just saw a major shake-up. BYD, a Chinese automaker, outsold Tesla for the first time, with 7,231 battery electric vehicles sold in April. That’s a 169% jump from last year.
Tesla, on the other hand, had a tough month. Sales plummeted 49% compared to last year. The company’s been facing backlash in Europe over CEO Elon Musk’s antics, including his involvement with the Trump administration.
BYD’s win is all the more impressive considering the company faces a 17% import tariff in Europe. Tesla, meanwhile, pays 7.8%. Other Chinese automakers, like Geely and SAIC, face even steeper tariffs, at 18.8% and 35.5%, respectively.
According to JATO Dynamics, a automotive intelligence firm, BYD’s victory is a big deal. The company only entered the European market in 2022, but it’s already beating out established brands like Fiat and Seat in France.
China is dominating the global electric vehicle market, and it’s not just about battery electric vehicles. The country is also leading the charge on plug-in hybrids. BYD’s European push is well-timed, as the continent hasn’t imposed tariffs on these types of vehicles. In fact, demand for plug-in hybrids is up 31%.
Some analysts think the EU’s tariffs aren’t high enough to deter buyers from choosing Chinese electric vehicles. To make a real impact, they say, tariffs would need to be as high as 55%.
This isn’t the first sign of trouble for Tesla. In March, the company reported that its 2024 battery electric vehicle sales were lower than BYD’s total new energy vehicle sales. This includes both battery electric and plug-in hybrid sales. It looks like BYD is poised to take over as the global leader in electric vehicles.