The Chinese electric vehicle manufacturer achieved record sales in December. In contrast, Tesla experienced a decline in sales last year for the first time in over a decade, as demand weakened and competitors accelerated their growth.
Under the leadership of billionaire Elon Musk, Tesla delivered nearly 1.79 million vehicles last year, representing a decrease of approximately 1% from the 1.8 million units sold in 2023. This decline occurred despite the company’s repeated price reductions throughout the year aimed at attracting buyers and maintaining its position as the leading global manufacturer of electric vehicles (EVs).
Meanwhile, BYD of China appears poised to narrow the gap, having reported 1.76 million EV sales in 2024. The Shenzhen-based company saw its total vehicle sales increase by over 41% year-on-year, surpassing 4.2 million units.
This growth was primarily driven by the sales of its hybrid vehicles.
BYD markets 90% of its cars within China, where it has been strengthening its dominance over foreign competitors such as Volkswagen and Toyota.
The company has capitalized on a surge in car sales in its domestic market, where fierce competition has led to lower prices and government incentives have encouraged consumers to upgrade from older vehicles to EVs or other more fuel-efficient alternatives.
Tesla also regards China as a crucial market; however, it has lost market share to competitors amid an ongoing price war.
Additionally, demand for electric vehicles has softened in other regions, including the United States and Europe, presenting challenges for numerous automakers.
Companies such as Volkswagen, Ford, and General Motors have adjusted their sales targets or postponed investments in EV technology over the past year.
Elon Musk has attributed Tesla’s weaker sales partly to the rise in borrowing costs since 2022, which has increased the expense of purchasing vehicles.
Analysts have also highlighted intensified competition and concerns regarding the brand, particularly as Musk becomes more politically active, a move that has drawn controversy.
Tesla’s sales declined in the first half of 2024 but began to recover later on. In the last quarter of 2024, the company delivered approximately 495,000 vehicles, marking a 2% increase year-on-year and setting a new quarterly record.
However, the firm’s stock price, which surged over 60% last year, has faced fluctuations.
