Chinese electric vehicle manufacturer BYD edged past Tesla in European sales for the first time last month, as Tesla’s registrations dropped sharply amid growing backlash against its CEO and intensifying competition from Chinese automakers.
Tesla’s sales in 32 European countries fell 49% in April to 7,261 vehicles, down from 14,228 in the same month a year earlier, according to data released Tuesday by the European Automobile Manufacturers’ Association (ACEA). The drop comes despite a 1.3% overall rise in car sales across the European Union, signalling that the broader auto market is beginning to rebound despite global economic uncertainty.
Analysts point to multiple challenges facing Tesla, including criticism of CEO Elon Musk’s political rhetoric, an ageing lineup, and factory shutdowns earlier this year for upgrades to the popular Model Y. The company’s public image has also taken a hit as boycotts and protests over Musk’s far-right views continue to mount.
Meanwhile, Chinese EV brands have surged ahead. BYD’s battery electric vehicle (BEV) sales in Europe soared 169% year-on-year to 7,231 units in April, pushing the company into the region’s top 10 automakers by sales. SAIC, the Chinese owner of the MG brand, also saw European sales jump 54% last month, buoyed by strong demand for its lower-priced electric models.
Tesla’s struggles have been compounded by geopolitical tensions, including former U.S. President Donald Trump’s renewed trade rhetoric. His threat to impose a 50% tariff on EU goods, though recently delayed until July, has further cooled European appetite for American brands.
From January through April, Tesla’s European sales dropped about 39% to 61,320 units, while the broader auto market remained largely flat, according to ACEA data.