Tesla’s Europe Sales Plunge as BYD Outsells it in the Region for the First Time

For the first time, BYD outsold Tesla in Europe in April, Reuters reported. According to a report released by research firm JATO Dynamics, BYD sold 7,231 battery-powered electric vehicles in European countries against Tesla’s 7,165 units. Demand for Tesla was hurt by the company’s aging model lineup as well as Elon Musk’s political associations.

A Big Moment

JATO Dynamics termed BYD auto industry growth in Europe as a big moment as demand for EVs in Europe remains steady.

“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,” Felipe Munoz, Global Analyst for JATO Dynamics said.

Overall, registrations for battery-powered EVs in Europe rose by 28% in April compared to the same period last year. Majority of these registrations were for Chinese brands. Even after the region imposed tariffs on China-made EVs, registrations of Chinese brands increased by 59% last month compared to last year. Registration of electric vehicle brands from Japan, the US, Europe, and South Korea rose by 26%.

Tesla’s Sales Decline Triggers

Tesla reported its initial drop in yearly deliveries in 2024. Analysts predict that the US EV maker will report another drop this year following a 13% decline in annual deliveries in quarter one.

Earlier this week, Tesla CEO Elon Musk said the company has already started turning the sales tide with demand rising in other parts of the world except Europe. In recent months, Musk’s political stands have triggered protests against the EV brand across Europe and in the US, causing a decline in sales.

Analysts have also attributed the sales decline to customers opting to wait for the low-priced redesigned Model Y to become widely available. Production interruptions to facilitate retooling of Tesla factories in order to manufacture the new version of Model Y crossover could have caused the sales dip as well.

BYD’s Low Cost Model

On May 21, BYD launched its low-cost Dolphin Surf model in Berlin, making it available in Europe’s EV market. The launch of this model not only intensifies BYD-Tesla competition in the region. But as cost continues to be a major hindrance to EV adoption in Europe, BYD’s newest model will pile pressure on European EV rivals to introduce more affordable vehicles.

BYD will be selling its new model at three price points, ranging from $26,100 for a 322 kilometer range vehicle to $$28,365 for the 507 kilometer range vehicle. But these prices will not be effective until the end of June. In the meantime, BYD is offering the new model at a discounted price.

Most EVs in Europe cost more than 20,000 euros. Only a few models like Leapmotor’s T03 and Dacia Spring cost less than this amount. About 11 new models that will cost less than 25,000 euros will be launching this year. These include Renault R5, Hyundai Inster, and Volkswagen’s ID.2.

“The compact segment is the next frontier for electrification in Europe. We think this market has huge potential,” BYD Regional Managing Director Maria Grazia Davino said.

Gradual Growth

In China, the Seagull model has driven BYD’s exponential growth. Sales of this model came second to Tesla’s Model Y in 2024. Last year, BYD became the largest EV maker in the world, surpassing Tesla. The company is overhauling its operations in Europe in order to broaden its dealer network and onboard hiring managers with local experience.

Considering April sales data, the revamp appears to be working. In Germany alone, BYD sales hit the 2,791 mark in the first four months of this year. This is close to the 2,891 vehicles the company sold the entire year in 2024. This sales success is reflected in other European countries. Overally, BYD sales in Europe increased four times in quarter one of this year, a sharp contrast to Tesla sales that dipped 37.2% in the same period.