Chinese automaker BYD is leaving Tesla in the dust in yet another major car market.
What happened: BYD sold more electric vehicles in Europe than Tesla last month, the first time it has surpassed what was once Europe’s leading EV brand.
- European sales of BYD’s battery-electric vehicles rose 169% in April from a year prior, while Tesla’s plummeted 49%.
- BYD overtook Tesla in global EV sales back in the final quarter of 2023 and has extended its lead since.
Why it matters: In markets where Chinese-made vehicles aren’t subject to large tariffs, BYD is now consistently outselling Tesla, raising questions about whether the U.S. automaker can compete with its lower-cost competitor in a fair fight.
Why it’s happening: BYD has significantly undercut Tesla on price — its mid-size sedan, the Qin L, is comparable to the Tesla Model 3 and just over half the price. Elon Musk’s controversial political activities have likely also contributed to Tesla's poor performance in Europe, where its sales have fallen drastically.
Zoom out: In Canada and the U.S., at least, Tesla is still protected from competition inside the cozy walls of tariffs that make BYD and other made-in-China vehicles far too expensive for domestic buyers. The question — not just for Tesla, but for all North American automakers — is what happens if those tariffs come down.—TS