Tesla Europe Sales Down 40%... BYD Racing Through the Niche Market

Anti-American sentiment toward the U.S. Donald Trump administration and Elon Musk, Tesla CEO and a close ally of President Trump, is intensifying, causing Tesla sales in Europe to plummet. Meanwhile, BYD, China’s top electric vehicle manufacturer, surpassed Tesla for the first time last year to become the world’s leading electric vehicle sales company.

On the 26th, the Nihon Keizai Shimbun (Nikkei) reported that the Trump administration’s tariff policies and conciliatory diplomatic stance toward Russia have sparked backlash in Europe, spreading a boycott movement against American products.

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Online, people are exchanging information about European alternatives to American products. In Denmark, 1,400 supermarkets have started separately labeling European products since early March.

In particular, Tesla, led by Musk, CEO of the Department of Government Efficiency (DOGE) and a close ally of President Trump, is facing the brunt of the anti-American boycott. According to the European Automobile Manufacturers Association (ACEA), Tesla sold 16,888 units in Europe last February, a 40.1% decrease compared to 28,182 units in the same month last year. Tesla’s sales in Europe for the first two months of this year dropped 42.6%.

While the European battery electric vehicle market rose 26.1% year-on-year in February, Tesla’s market share during this period halved from 21.6% in February last year to 10.3%.

The Associated Press explained, “There are complaints about Tesla’s aging vehicle lineup, and significant backlash against Musk, who has ties to the Trump administration.”

The sales decline is most severe in Germany. Tesla new car registrations in Germany in February fell 76% year-on-year. On German online shopping sites, stickers saying “I bought the car before Musk went crazy” are ranking among the most popular. There was even an incident where a Tesla car parked on the street in Berlin was set on fire. The Nikkei reported that some Tesla shareholders are selling their stocks due to their resentment toward Musk.

Foreign media analyzed that the controversy stems from Musk publicly supporting the far-right German party Alternative for Germany (AfD) in the German general election and a photo circulating on social media showing a gesture reminiscent of a Nazi salute at President Trump’s inauguration. Opposition to the expansion of Tesla’s Gigafactory located in the suburbs of Berlin also had an impact. Local residents are concerned that the factory expansion could negatively affect water resources.

While Tesla faltered, Chinese electric vehicle companies such as BYD surged ahead. The day before, BYD announced that sales of electric and hybrid vehicles surged 40% last year, with revenue increasing 29% year-on-year to 777.1 billion yuan (approximately 156.79 trillion won), marking a record high. Net profit rose 34% year-on-year to about 40.2 billion yuan.

BYD shocked the global automotive industry by introducing a fast-charging system that significantly improved battery charging time and driving range, which had been considered the biggest weaknesses compared to internal combustion engine vehicles. It can drive 400 km with just 5 minutes of charging, greatly outperforming Tesla’s Supercharger system, which requires 15 minutes of charging to drive 320 km. BYD is targeting the gap left by Tesla by planning to establish its third European factory in Germany, following Hungary and T?rkiye.

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