Because we’re not just talking about a simple drop in sales here. We’re talking about a PLUNGE. Guys, Tesla sold just 7,261 cars in Europe in April. That’s a 49% drop compared to last year. A trend that follows the company’s global sales. And it’s not like the market did poorly. Quite the opposite! Electric car sales in Europe rose by 34%.
So everyone is selling more… and Tesla is selling less. What went wrong?
And it’s not just about sales, since we’re also seeing Tesla’s gross profit margin going downhill.
Let’s start from the beginning. Tesla’s brand has taken a serious hit. Not because of the quality of its cars. But because of Elon Musk. Yes, the same Elon who spent more time next to Trump than overseeing Tesla .
His political involvement and cooperation with the U.S. government have sparked strong reactions in Europe. In fact, there were even protests outside Tesla stores in March. It doesn’t help that he stated he’ll be dedicating 1–2 days a week to the so-called Department of Government Efficiency . Yes, that’s a real thing. And just like that, consumer trust is eroded, especially in a market as demanding and sensitive as Europe.
And while all this is happening, Tesla’s lineup has started to feel stale. Sure, a refreshed version of the Model Y was released, but Tesla hasn’t launched a new mass-market model in quite a while. And you know what Tesla doesn’t have at all? Hybrids. Cars that have both an electric motor and a traditional engine. Right now, hybrids account for over 35% of the European market.
And Tesla … is completely absent. The public is clearly leaning towards flexibility and middle-ground solutions. Not everyone wants to go fully electric just yet.
THE RISE OF BYD
And in the midst of all this chaos… here comes BYD . In April, for the first time ever, BYD sold more fully electric cars than Tesla in Europe.
source
Yes, you read that right. And the craziest part? This happened even though BYD pays nearly double the import duties compared to Tesla ! 17% versus 7.8%. And yet, BYD not only pulled it off, but also surpassed European brands like Fiat and Seat. In France, specifically, it left them behind. And we’re talking about a company that only started operating seriously outside of Norway and the Netherlands in 2022.
And it doesn’t stop there. BYD is now building a factory in Hungary to manufacture directly in Europe. It’s also started selling plug-in hybrids, which… are not subject to any duties! So it’s combining electric technology with more favorable trade terms. Furthermore, BYD has started to build a reputation for reliability, offering products at competitive prices with features that are now reminiscent of premium categories. It’s not just cheap. It’s also good.
And as we said, all this is happening BEFORE BYD even begins full-scale production in Europe. Meaning it’s just getting started. If BYD manages to win over European consumers, Tesla could find itself in real trouble. Because BYD isn’t just playing defense. It’s on offense—and a well-organized one at that.
Posted Using INLEO
