Tesla’s first sales drop in over a decade was reported as rivals gained momentum and demand softened worldwide. The company delivered 1.79 million cars in 2024, reflecting a 1% decrease compared to 2023’s record.
Despite repeated price cuts to attract buyers, Tesla struggled to maintain its position as the top electric vehicle (EV) manufacturer. Chinese car manufacturer BYD, a rising competitor, achieved a breakthrough by selling 1.76 million EVs last year.
BYD’s overall vehicle sales rose 41% to 4.2 million in 2024, driven mainly by its hybrid model. Over 90% of BYD’s sales occurred in China, where government subsidies and lower prices boosted EV adoption.
While Tesla continues to count China as a vital market, the price war has significantly impacted its market share. In Europe and the US, softening EV demand forced automakers like Volkswagen, Ford, and General Motors to revise sales targets or delay investment General motors to revise sales targets or delay investment.
Analysts highlighted higher borrowing costs and Musk’s political controversies as factors affecting Tesla’s performance. Tesla’s first sales drop occurred earlier in 2024 but rebounded in the last quarter, delivering a total of 495,000 cars, an annual growth of 2%.
Still, Tesla shares fell 5% after results missed analysts’ expectations of 500,000 deliveries. Meanwhile, other automakers face unique challenges. Honda and Nissan engaged in merger talks to counter growing Chinese competition.
Stellantis CEO Carlos Tavares resigned after a profit warning, reflecting industry challenges. Despite global competition, BYD continues expanding in emerging markets. However, a setback in Brazil halted factory construction over alleged labor abuses, sparking concerns over ethical standards.
