Why Tesla's dominance in EV market is waning
What's the story
Tesla's brand appeal has taken a hit in key markets, including China and Europe.
The decline is attributed to CEO Elon Musk's political controversies in Europe and intense competition in China, as per a UBS survey.
The study found that only 14% of EV buyers in mainland China chose Tesla as their preferred brand last year.
This is down from 18% in 2022 and a peak of 30% in 2020 when the US automaker started producing its Model 3 locally.
Global shift
A decline in appeal
The UBS survey, which included responses from 10,500 people, found that only 18% of global vehicle buyers considered Tesla their top choice last year. This is a decline from 22% in 2023.
In the US market alone, positive sentiment toward Tesla fell to 29% from 38%.
In Europe too, the number dropped to 15%, down from the previous year's figure of 20%.
Markets
BYD and Xiaomi gain traction in China
In China, BYD, the world's largest EV manufacturer, has overtaken Tesla in terms of performance and perception.
Even Xiaomi, a tech giant that recently entered the EV market after Apple's failure to do so, is gaining popularity at Tesla's expense.
The UBS report did not provide specific percentage figures for these companies but noted their growing influence on China's EV landscape.
Sales comparison
BYD surpasses Tesla in European EV sales
In a major market shift, BYD outperformed Tesla in terms of pure electric car sales in Europe last month.
According to market research firm Jato Dynamics, the Shenzhen-based automaker sold 7,231 EVs in April—a whopping 169% increase from last year.
Meanwhile, Tesla's sales for the same period fell by 49% to just 7,165 units.