Tesla’s global sales fell for the first time, while China’s BYD rose

Data released by Tesla, the US pure electric vehicle (EV) giant, on January 2 showed that global sales in 2024 (January to December) fell by 1% year-on-year to 1,789,226 vehicles. This is the first time that annual sales have declined since the release of sales performance. China’s BYD’s pure electric vehicle sales in 2024 are still lower than Tesla’s, but its sales from October to December exceeded Tesla’s for the first time in about a year.

Tesla’s sales in the United States and China, which are its main markets, are sluggish. China accounts for about 50% of global sales, and the United States accounts for about 30%. In China, it is affected by economic slowdown and price competition with local EV manufacturers. The popularity of EVs in the United States has slowed down, and its market share has also decreased. Tesla did not announce sales in each region, but judging from sales in each country, annual sales in the United States and China have fallen for the first time since statistics were started.

Data from research company MarkLines shows that from the cumulative sales of Tesla in China, the United States and Europe (27 countries) from January to November, all regions have declined year-on-year. China decreased by 4%, the United States decreased by 5%, and Europe decreased by 23%.

This is the first time that natural annual sales have experienced negative growth since quarterly sales began to be announced in 2015. Sales from October to December increased by 2% year-on-year to 495,570 units, exceeding the previous year for two consecutive quarters, but BYD’s EV sales from October to December reached 595,413 units, surpassing Tesla for the first time in about a year. On January 2, Tesla’s stock price fell by 8% at one point in the U.S. stock market.

In terms of annual sales in 2024, Tesla remains the world’s number one, but the gap with BYD has narrowed to 24,000 units. BYD’s EV sales for 2024 released on January 1 increased by 12% to 1,764,992 units. If the current sales speed is maintained, it is possible to surpass Tesla in annual sales in 2025.

Tesla’s CEO Elon Musk said in October that global sales in 2025 will increase by 20-30% over the previous year. It is possible that this is taking into account the launch of low-priced EVs below $30,000 that were previously announced to start production in the first half of 2025.

Tesla sees autonomous driving using artificial intelligence as a growth area amid declining EV sales. It has proposed a plan to produce self-driving taxis “CyberCab” in 2026.

Musk has confirmed that he will join the new Trump administration and is believed to lead the relaxation of restrictions. With the growth of EV sales at a crossroads, the field of autonomous driving will determine Tesla’s future.

Source: Nikkei Chinese