Chinese automaker BYD has, for the first time, sold more cars than Tesla in Europe.
According to a report released by JATO Dynamics, a company that analyzes trends, pricing, and sales in the auto market, BYD’s electric cars outsold Tesla’s across Europe in April.
Citing JATO’s report, international news agency Reuters reported that Tesla sold 7,165 electric vehicles in April, while BYD sold 7,231 units.
JATO attributes BYD’s success to Tesla’s declining sales in Europe, which it links to the aging of Tesla’s vehicle models and CEO Elon Musk’s close association with Donald Trump.
“BYD overtaking Tesla’s dominance of many years is a historic moment in the European auto market,” said JATO global analyst Felipe Munoz.
JATO’s research also shows that demand for electric vehicles in Europe has increased compared to last year, with BYD’s cars seeing the highest growth among competitors.
Compared to April last year, electric vehicle registrations in Europe rose by 28%. Despite tariffs imposed by the European Union on Chinese vehicles, BYD’s new registrations increased by 59%, according to JATO’s report. In contrast, new registrations of vehicles from Europe, Japan, South Korea, and the United States increased by only 26%.
Tesla’s profit dropped by 71% in the first quarter of this year, partly due to Elon Musk’s political involvement and growing closeness with Trump. In the first quarter of the previous year, Tesla made $1.4 billion in profit, but this year it earned only $409 million during the same period. In a promotional effort, Trump even bought a red Model S in Musk’s presence at a White House event. Nevertheless, Tesla’s sales did not improve in the U.S.
Following the profit drop, Tesla abandoned its goal of producing 20 million vehicles annually by 2030.
After seeing the negative impact of his political involvement on business, Elon Musk announced that he would spend less time at the White House and refocus on his core business. However, even though Musk has distanced himself from the Trump administration, it is believed that his political stance has already caused irreparable damage to the Tesla brand.
Tesla, once propelled by Musk’s charismatic and successful image, is now facing losses as his popularity declines.
Moreover, Chinese companies like BYD have started producing relatively high-quality cars at significantly lower costs, which has also contributed to Tesla falling behind in the competition.
