Chinese carmaker BYD outsold Tesla in battery-electric vehicle registrations across Europe in April, marking a major shift in the continent’s electric vehicle (EV) market and signalling rising competition for the American auto giant.

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According to data released by market research firm Jato Dynamics, BYD registered 7,231 new battery-electric vehicles (BEVs) in the EU and UK during the month — up a staggering 169% year-on-year. Tesla, which has long dominated the region’s EV segment, saw its registrations drop by 49%, slipping behind BYD for the first time.

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“Although the difference between the two car brands’ monthly sales totals may be small, the implications are enormous,” said Jato analyst Felipe Munoz. “This is a watershed moment for Europe’s car market.”

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The result catapults BYD into the top 10 EV brands on the continent and highlights the rapid ascent of Chinese automakers in Western markets, where affordability, production scale, and government support are fuelling their expansion. When including plug-in hybrids, BYD’s lead over Tesla grows even more pronounced, with total sales jumping 359% in April.

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Meanwhile, the broader European EV market continues to grow. Industrywide registrations rose 28% year-on-year. Volkswagen remained the market leader, with its EV sales up 61% in April. Skoda, another brand within the VW Group, more than tripled its EV registrations.

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Tesla’s sharp drop comes despite the accelerating growth of the EV sector. The company is currently grappling with slowing global demand, pricing pressures, and increasingly fierce competition in both Europe and China. In the past year, CEO Elon Musk has also faced criticism for controversial political statements and leadership decisions, which some analysts believe may be affecting brand perception.

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The milestone for BYD underscores a broader power shift within the auto industry, as Chinese brands continue to eat into legacy players’ market share across Europe and beyond.

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