These 6 Chinese EVs are giving Tesla a headache in Europe

Business Insider

22-04-2025

Tesla's sales are collapsing in Europe amid an Elon Musk-inspired brand crisis.
It also faces growing competition from Chinese EV firms like BYD, which has seen sales surge.
Here are six Chinese electric cars that are giving Tesla a headache in its third-biggest market.
Tesla has had a nightmare start to the year, and nowhere more so than in Europe.
The automaker's sales across the continent have dropped by 37% in the first three months of the year, according to figures from market researcher Dataforce, as it battles a global brand crisis tied to CEO Elon Musk's involvement with the Trump administration.
Once all but the only EV player in town, Tesla now faces a wide array of competitors in Europe, adding to the company's woes.
Some of those new rivals are from China. Not content with crushing Tesla in their home market, Chinese firms like BYD are expanding rapidly overseas, particularly in Europe.
Although Tesla still dominates the EV market in Europe, and Chinese automakers have only a small presence, sales data suggests they are catching up.
BYD saw its sales balloon from around 7,000 in the first three months of last year to 27,000 over the same period in 2025, an increase of nearly 300%, per Dataforce's figures.
As Tesla fights to hold on, here are some of the Chinese EVs that should trouble Elon Musk in Tesla's third-largest market.
BYD Seal U
BYD has launched a flood of models in Europe over the past year, but the Seal U is the one that should be making Tesla nervous.
The Chinese automaker has sold around 12,400 of the hybrid SUVs this year, with over half of those sales coming in the past month.
Like many of its Chinese rivals, BYD has placed a renewed focus on hybrids, which Tesla does not sell, in Europe, as they are exempt from the tariffs on imported Chinese electric cars introduced by the European Union last year.
BYD Dolphin
Another entry in BYD's line of aquatic-themed EVs, the all-electric Dolphin made its European debut in 2023.
The electric hatchback has sold around 4,500 units so far in 2025, a 175% increase from the same period last year.
The $35,000 EV will soon be joined by the Dolphin Surf, the European brand name for BYD's Seagull hatchback, which sells for as little as $7,800 in China and is set to go on sale this year.
MG ZS
Historic British car brand MG was acquired by Chinese giant SAIC Motors in 2007, and its lineup of affordable EVs and hybrids is currently going toe-to-toe with the US automaker in Europe.
MG has sold 36,400 of its MG ZS hybrid so far in 2025, a 44% increase from the same period last year.
That surge saw the $30,000 compact SUV outsell Tesla's Model Y, which competes in the same segment, in the first three months of the year.
MG3
MG sales have also been boosted by its $25,000 MG3 hybrid, which launched in Europe last year and has sold 15,200 units so far in 2025.
The carmaker's sales surge has turned SAIC Motors into one of the biggest threats facing Tesla in Europe.
The state-owned Chinese brand's sales overtook Tesla's in the first two months of 2025, according to data from the European Automobile Manufacturers' Association.
Leapmotor T03
Jeep and Chrysler owner Stellantis has partnered with Chinese EV maker Leapmotor to sell its cars in Europe, and the T03 EV was one of the brand's first cars to come to the continent when it launched late last year.
The $21,000 "city car" is just 3.6 metres long and has a range of up to 263 miles. Leapmotor and Stellantis have sold 2,500 of them this year in Europe.
Polestar 4
Swedish brand Polestar, which is owned by Chinese conglomerate Geely, has been aggressive in its attempts to snatch market share from Tesla.
CEO Michael Lohscheller told Bloomberg he had told his salespeople to target Tesla owners, describing the backlash against Musk as an opportunity for the EV brand.
Sales data from Europe suggests it might be paying off, with Polestar seeing its sales double to over 9,000 in the first three months of the year.
The surge was driven by the Polestar 4, which launched in Europe last year. The luxury electric coupe, which is manufactured in China, has sold 4,700 units so far in 2025.