Tesla ceded its crown as the world’s top electric vehicle maker to China’s BYD, after annual sales fell for a second year, hit by rising competition, the expiry of U.S. tax credits and brand backlash.

With global EV sales rising 28% last year, BYD outsold Tesla for the first time on an annual basis, helped by rapid growth in Europe, where the Chinese automaker has been widening its lead over the U.S. rival.

The Chinese automaker’s electric vehicle sales surpass Tesla’s after years of narrowing the gap.

END OF TAX CREDIT IN U.S. PINCHES TESLA

Tesla’s fourth-quarter figures come after third-quarter deliveries were supported by a rush to lock in $7,500 in federal tax credits after President Donald Trump’s administration decided to pull the plug on the incentive in September.