BYD Dethrones Tesla in Europe: The EV Underdog’s Stunning Power Play

Move over, Elon—Warren Buffett’s favorite automaker just flipped the script.

BYD’s European surge proves legacy automakers aren’t the only ones getting steamrolled. The Chinese EV upstart outsold Tesla in Europe last quarter, marking the first time Tesla’s crown has slipped since the Model 3 launch.

Wall Street analysts—busy downgrading Tesla stock while simultaneously raising price targets—somehow missed this plot twist. Maybe they were too busy calculating how many ’full self-driving’ vaporware updates equal one actual delivery.

TLDR

• BYD sold 7,231 electric vehicles in Europe in April, surpassing Tesla’s 7,165 units
• BYD’s European EV sales increased 359% while Tesla saw a 49% year-over-year drop
• This marks the first time BYD has outsold Tesla in Europe, despite only entering the market in 2022
• Jato Dynamics analyst called this a “watershed moment” for Europe’s car market
• BYD aims to sell half its vehicles outside China by 2030, partly due to increased competition at home

BYD Company (BYDDY) shares jumped 3.5% today following news that the Chinese electric vehicle manufacturer has outsold Tesla in Europe for the first time. Data from automotive intelligence firm Jato Dynamics shows BYD registered 7,231 fully electric cars in Europe last month, narrowly beating Tesla’s 7,165 units.

This milestone comes less than three years after BYD first entered the European market. The company only began operations beyond Norway and the Netherlands in late 2022.

The achievement is even more striking when looking at the growth rates. BYD saw its European sales surge by 359% compared to the same period last year. Meanwhile, Tesla reported a steep 49% year-over-year decline in total volumes for April.

#Chinese automaker #BYD (BYDDY, https://t.co/wMt2dSAyU7) has outsold #Tesla (TSLA) in Europe for the first time, according to a report by JATO Dynamics

📌Read more: https://t.co/HpGpbuE8vY pic.twitter.com/HOQKOYfhtn

— News.Az (@news_az) May 22, 2025

Jato Dynamics’ global analyst Felipe Munoz described the sales figures as a “watershed moment” for the EV industry. Tesla has dominated European EV sales for years before this upset.

Market Strategies

BYD’s European success comes despite challenges posed by EU tariffs on Chinese-made electric vehicles. The company has responded by expanding and diversifying its European product lineup.

One key strategy has been introducing plug-in hybrid vehicles, which aren’t subject to the same EU tariff regime as fully electric models. This has helped BYD maintain momentum despite trade barriers.

The Chinese automaker has made overseas expansion a central part of its long-term plan. BYD reportedly aims to sell half of its vehicles outside China by 2030.

This international push stems from two main factors. First, competition in the Chinese domestic market has intensified. Second, trade tensions with the US and EU have made it crucial to establish direct production and sales channels in other regions.

Tesla’s Challenges

For Tesla, these European figures represent another setback in what has already been a difficult year. The company reported its first-ever annual delivery decline last year, and analysts expect another fall in 2025.

Tesla’s European struggles come from multiple directions. The company faces an aging model lineup that hasn’t seen major refreshes in key segments.

Production halts to retool factories for the redesigned Model Y crossover have also hurt manufacturing and sales numbers in the first quarter.

New Tesla Model Y with custom 21” wheels pic.twitter.com/DgJ5SR6QYH

— Tesla Newswire (@TeslaNewswire) May 10, 2025

Tesla CEO Elon Musk claimed earlier this week that the company had “already turned around sales” and that demand was strong in regions outside Europe. However, these latest European figures challenge that optimistic assessment.

Some analysts point to Musk’s political views as another factor affecting Tesla’s European performance. His relationship with President TRUMP and controversial public statements have reportedly triggered protests against Tesla in both the US and Europe.

The European EV market itself remains robust despite Tesla’s difficulties. Battery electric vehicle registrations increased 28% in April compared to last year, primarily driven by Chinese car brands.

Chinese-made electric vehicles saw registrations jump 59% for the month, outpacing the 26% growth recorded by carmakers from Europe, Japan, South Korea, and the United States.

This shift in market share represents a major realignment in the global EV industry. Just a few years ago, Tesla was the undisputed leader in electric vehicles worldwide.

BYD’s European success shows how quickly competitive dynamics can change in the rapidly evolving electric vehicle sector. The company’s ability to adapt to regulatory challenges through product diversification has proven effective.

Tesla now faces pressure to respond with new models and strategies to regain its European momentum. The company’s upcoming products and manufacturing decisions will be closely watched by investors and industry analysts.

For BYD, this European milestone marks just one step in its global expansion plan. The company continues to target new markets while building its brand recognition outside China.