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Roula Khalaf, Editor of the FT, selects her favorite stories in this weekly newsletter.
BYD has made a significant milestone by outselling Tesla in Europe for the first time in electric vehicle sales. According to research group Jato Dynamics, BYD registered 7,231 fully electric cars in Europe last month, surpassing Tesla’s 7,165 registrations. This achievement highlights BYD’s successful expansion into overseas markets, particularly in Europe.
The Chinese automaker’s aggressive push into the European market has been met with success, while Tesla has experienced a decline in sales due to factors such as an aging product lineup and backlash against CEO Elon Musk’s involvement in regional politics. Felipe Munoz, a global analyst at Jato Dynamics, described this development as a “watershed moment for Europe’s car market,” noting that Tesla had previously dominated the European battery electric vehicle market.
Despite recent efforts to revamp its flagship Model Y car, Tesla’s sales have continued to decrease in key European markets. Musk’s decision to step back from his government role in the US to focus on leading the company comes after a decline in first-quarter profits.
The decline in Tesla’s European sales coincides with the launch of new electric vehicle models by competitors such as Renault and Stellantis, who are responding to stricter emissions regulations in the EU. Additionally, Chinese automakers like BYD have expanded their product offerings in Europe, including plug-in hybrids, which are not subject to the EU’s higher tariffs.
Globally, BYD has surpassed Tesla as the largest maker of electric vehicles, driven by strong demand in its home market. However, its rapid expansion into European markets has raised concerns among Western carmakers. In April, registration of EVs from Chinese manufacturers in Europe saw a significant increase, with both electric vehicles and plug-in hybrids experiencing growth.
Overall, BYD’s success in outselling Tesla in Europe underscores the shifting dynamics of the electric vehicle market and highlights the increasing competition faced by established players in the industry. As the demand for electric vehicles continues to rise, it will be interesting to see how Tesla and other manufacturers adapt to the changing landscape.
