Despite steep tariffs, the Chinese carmaker leapfrogged Tesla in April, in what an analyst called a “watershed moment” for the continent’s auto market.

When you look at sales at the brand level, things get a little worse for the American automaker. Volkswagen sold more EVs than anyone else in Europe last month, increasing by 61 percent to 23,514 units. As for Tesla? It fell to 11th place, with just 7,165 sales in total, a 49 percent decrease year on year.

The Chinese carmaker BYD outsold Tesla in Europe's BEV segment for the first time in April. But markets see Tesla's long-term potential and ETFs still hold it as a top holding.