Tesla loses halo as ‘top-choice’ EV brand in China, lets BYD catch up in Europe, UBS says

Tesla lost favour with global customers, with 18 per cent of buyers considering it their top pick last year, down from 22 per cent, UBS says

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A man placed a sign outside a Tesla dealership during a protest against Tesla and its CEO Elon Musk outside a Tesla dealership in Los Angeles on March 14, 2025. Photo: Reuters

Published: 3:00pm, 28 May 2025Updated: 4:11pm, 28 May 2025

Tesla’s brand has lost its lustre in major markets around the world due to the political entanglements of CEO Elon Musk, creating opportunities for Chinese rivals like BYD and Xiaomi to fill the void, according to a UBS survey.

The number of electric vehicle (EV) buyers in mainland China who picked Tesla as their top choice fell to 14 per cent last year from 18 per cent a year earlier and a 30 per cent peak in 2020 when the US carmaker began assembling its Model 3 in Shanghai, UBS said in a report released on Tuesday.

Tesla has lost ground with customers worldwide, with 18 per cent of global vehicle buyers considering it their top pick last year, down from 22 per cent in 2023, according to UBS’ survey of 10,500 participants. In the US, the positive view fell to 29 per cent from 38 per cent. In Europe, it fell to 15 per cent from 20 per cent a year earlier.

“In China, we see intense competition and Tesla is no longer seen as the technology leader,” the report said. “In Europe, we believe there may have been brand damage from Musk’s political involvement. Overall, we remain cautious on Tesla stock.”

Supporters of New Generation (Neue Generation) protest against Elon Musk in Berlin on March 31, 2025. Photo: Reuters

On the mainland, Tesla has been surpassed in performance and perception by BYD, the world’s largest EV builder. Even Xiaomi, the smartphone and appliance maker that was able to turn out an EV after tech giant Apple failed, has gained popularity at Tesla’s expense, according to the report, which did not publish detailed percentage numbers for the two companies.

Last month, BYD sold more pure electric cars than market leader Tesla in Europe for the first time, according to market research firm Jato Dynamics. The Shenzhen-based carmaker sold 7,231 EVs in April, up 169 per cent from a year earlier, while Tesla’s sales fell 49 per cent to 7,165 units for the same period.

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