BYD's success in the EU comes despite the economic bloc's imposition of punitive tariffs on battery electric vehicles made in China last October.BYD sold more pure battery electric vehicles in Europe than Tesla for the first time ever last month — a "watershed moment" for the region's car market,

BYD, leveraging its cost advantages and strong Chinese market presence, has overtaken Tesla in global EV sales, necessitating BYD's continued focus on affordability and international expansion, while Tesla needs to diversify its lineup and reduce costs.

BYD Co. sold more electric vehicles in Europe than Tesla Inc. for the first time, overtaking the American brand that long led the continent’s EV segment.