Chinese electric vehicle maker BYD’s shares in Hong Kong surged to a record high on Friday, following a report that the company outsold Tesla in Europe for the first time.
BYD’s stock climbed to HK$477.80 before settling slightly lower at HK$473.40, extending gains from the previous day when Citi raised its price target on BYD and highlighted its improving export outlook. This rise helped lift the Hang Seng index by 0.6%.
According to market research firm JATO Dynamics, BYD sold 7,231 battery electric vehicles (BEVs) across 28 European countries in April, narrowly surpassing Tesla’s 7,165 units.
This milestone marks a significant breakthrough for BYD in a key growth market, especially as it only began expanding beyond Norway and the Netherlands late last year. BYD’s BEV sales jumped 169% year-over-year in April, far outpacing the overall European EV market growth of 17% in the same period.
BYD also benefits from strong sales of plug-in hybrid vehicles, which remain its main revenue drivers. This success comes despite the European Union imposing steep import tariffs on Chinese EVs last year.
Meanwhile, Tesla’s sales in Europe have dropped sharply, falling 49% year-over-year in April, causing the company to slip to 11th place in monthly EV sales rankings.
Tesla faces challenges from an aging vehicle lineup, production interruptions for factory upgrades, and negative public sentiment linked to CEO Elon Musk’s political views. Musk recently claimed Tesla’s sales have rebounded outside Europe, but the company logged its first annual delivery decline in 2024.
This shift signals a changing landscape in the European EV market, with consumers increasingly open to more affordable Chinese electric vehicles. Analysts describe BYD’s rise as a watershed moment, challenging Tesla’s long-standing dominance in the region.
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