Tesla experienced its first annual decline in global deliveries in 2024, delivering 1.79 million vehicles, down 1.1% from 2023. This dip fell short of CEO Elon Musk’s earlier prediction of slight growth. Challenges like reduced European subsidies, growing competition from Chinese automakers, and a shift toward lower-priced hybrid vehicles in the U.S. contributed to the decline.
However, Tesla achieved a record-breaking year in China, its second-largest market. The company sold over 657,000 cars, an 8.8% increase from the previous year. December alone saw sales jump 12.8% from the previous month to 83,000 units. China accounted for 36.7% of Tesla’s global deliveries in 2024, highlighting the region’s importance.
Chinese competitor BYD is closing in fast, with global EV sales up 12.1% to 1.76 million units in 2024. BYD’s aggressive pricing strategy and diverse lineup of EVs and plug-in hybrids have strengthened its position. The company also saw its passenger vehicle sales rise 41% globally, though it missed export targets due to higher EU tariffs.
Tesla is fighting back with price cuts and incentives like zero-interest financing for its popular Model Y in China. As the EV market becomes increasingly competitive, Tesla and its rivals are gearing up for another challenging year.
2024 has underscored how fierce the race in the global EV market has become, with Chinese automakers emerging as serious contenders.
