Shares of Chinese electric vehicle giant BYD reached an all-time high on Friday after new data showed it outsold Tesla in Europe for the first time. The stock surged to HK$477.80 before easing slightly to close at HK$473.40, continuing a rally that began earlier this week.
The gains followed a report from analytics firm JATO Dynamics, which revealed that BYD registered 7,231 electric vehicles in Europe in April, edging past Tesla’s 7,165 registrations for the same period.
Citigroup Boost and Export Outlook Fuel Momentum
Investor sentiment was further boosted on Thursday when Citigroup raised its price target for BYD, citing strong export prospects and growing international demand. The upgraded forecast helped lift BYD shares to record levels, contributing to a 0.6% rise in the Hang Seng Index.
Surpassing Tesla Marks a Milestone for BYD
The sales data signals a significant milestone for BYD. While the company is already known for strong domestic performance, this is the first time it has overtaken Tesla in Europe, a key growth market for electric vehicles.
In addition to electric vehicles, BYD also sells plug-in hybrid models, which remain a major driver of its global sales.
BYD Resilient Despite EU Tariffs
BYD’s strong performance comes in spite of steep European Union tariffs imposed on Chinese electric vehicle imports last year. The company has managed to maintain its upward sales trajectory despite the regulatory pressure.
Tesla Faces Headwinds Amid Falling Sales
Meanwhile, Tesla is grappling with falling global demand. The U.S. automaker is facing challenges due to an aging product lineup and growing public backlash over CEO Elon Musk’s political positions. In 2024, Tesla recorded its first annual decline in deliveries, adding to investor concerns.
Earlier this week, Musk claimed that Tesla’s global demand remains strong outside of Europe and said the company is working to turn its sales around.
