China’s BYD outsells Tesla in Europe for first time

Chinese auto giant BYD sold more electric vehicles in Europe than Tesla for the first time, a setback for Elon Musk’s EV maker as it faces growing competition overseas.

Tesla registered 7,165 battery-electric vehicles in Europe last month, down 49% on year according to data from Jato Dynamics, a consumer research group. In contrast, registrations for BYD more than doubled to 7,231 vehicles.

“Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous," said Felipe Munoz, global analyst at JATO Dynamics. “This is a watershed moment for Europe’s car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022."

Tesla sales in Europe have been languishing for months as the company grapples with stiff competition and backlash from Chief Executive Elon Musk’s role in the Trump administration. New car registrations for Tesla models in the European Union slumped 36% in March, 47% in February and 50% in January, according to the European Automobile Manufacturers’ Association, an industry body.

The company in April posted a 71% fall in net income for the first quarter. Musk said at the time that he was going to spend less time in Washington and more overseeing Tesla as investors were concerned that he had taken his eye off the ball.

Meanwhile, BYD has been expanding rapidly in Europe even as the EU raised tariffs on China-made EVs. BYD’s registrations, including plug-in hybrids, more than quadrupled in April from a year earlier, according to Jato Dynamics data. The research group attributed that growth to a broad and competitive lineup of fully electric vehicles and plug-in hybrids.

BYD in April reported a doubling in net profit for the first quarter. The company sold more battery EVs than Tesla in the first three months of the year, retaining the crown as the world’s top EV seller.

Jato Dynamics said BYD’s rapid expansion in Europe had already pushed the Chinese company ahead of legacy brands, outselling Fiat and Seat in France.

Write to Mauro Orru at mauro.orru@wsj.com