(Reuters) -Chinese automaker BYD sold more electric vehicles in Europe than Tesla for the first time, according to a report by JATO Dynamics, as an aging model lineup and CEO Elon Musk's politics hurt demand for the U.S. EV maker's cars.

BYD, which also makes plug-in hybrid vehicles, registered 7,231 battery-powered electric vehicles (BEV) in Europe in April, while Tesla registered 7,165 units, the market research firm said.

"This is a watershed moment for Europe's car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022," JATO Dynamics' global analyst Felipe Munoz said.

Demand for electric vehicles in Europe remains steady. BEV registrations surged 28% in April from last year, largely driven by Chinese car brands.

Despite the EU's imposition of tariffs on Chinese-made electric vehicles, registrations of such cars increased 59% in the month from a year earlier, while carmakers from Europe, Japan, South Korea and the United States recorded 26% growth.

WEAK TESLA DEMAND

The company reported its first drop in annual deliveries last year, and analysts expect another fall this year after a 13% decline in the first quarter.

Musk said earlier this week that Tesla had already turned around sales, and demand was strong in regions apart from Europe.

His political views have triggered waves of protests against Tesla in the U.S. and Europe, leading to a slump in sales.

Additionally, production halts to retool factories to make the redesigned Model Y crossover globally caused a drop in manufacturing and sales in the first quarter.

Analysts have also attributed lower sales to customers waiting for less-expensive versions of the new Model Y, Tesla's best-selling vehicle, to become more widely available.

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)