Tesla records first-ever decline in annual global deliveries
01/02/2025 05:20 PM
Global deliveries of Tesla electric cars over a calendar year have declined year-on-year for the first time in the company’s history – despite a late surge – but it remained ahead of BYD.
Tesla has reported its first year-on-year decline in annual new-car deliveries on record amid a softening in demand for electric vehicles (EVs).
It remained the top seller of electric cars globally in 2024 despite late surges from deliveries by it and second-placed BYD, which managed to sell more EVs than Tesla in the final quarter of the year for the second year running.
Data published by the US car maker today shows a 1 per cent slide in deliveries from 1,808,581 in 2023 to 1,789,226 in 2024 – against BYD’s 1,699,715 electric cars in 2024 – down on its forecast of “slight growth” communicated to investors in October.
While it is only a reduction of 19,355 cars, it is the company’s first decrease in annual sales since it began publishing quarterly vehicle delivery figures in mid-2011 – and compares to 39 per cent growth the year prior.
The slump is despite the fourth quarter of 2024 representing an all-time record for the car maker, with the 495,570 deliveries reported beating the previous benchmark of 484,507 cars set a year prior.
Full-year Tesla sales data for Australia due to be published imminently is expected to paint a dimmer picture, as the brand entered December with a 21 per cent decline in year-to-date sales locally.
CEO Elon Musk has forecast a bounce-back in 2025, predicting a 20 to 30 per cent increase in deliveries thanks to new, more affordable models due in the first half of this year.
MORE: Tesla Australia sales slump for seventh consecutive month (published November 2024)
While Tesla car sales are down, growing demand for its home energy products, including the Powerwall batteries, has seen deployments of those more than double year-on-year.
In contrast, BYD’s mix of plug-in hybrid and electric cars has allowed it to weather the electric-car slowdown – and capitalise on increased demand for hybrids.
It set a new electric-vehicle sales record in 2024, reporting 1.7 million deliveries – up 8 per cent – but it sold 63 per cent more hybrids in 2024 than the year prior, for a total of 4,042,445 passenger vehicles over the year, up 34 per cent.
MORE: BYD revenue tops Tesla for the first time (published November 2024)
The Chinese giant rolled out a broad range of new models globally in 2024 – from small cars to utes – and has hedged its bets on hybrid and electric power.
Tesla did not launch any new models in 2024, and its two most recent introductions – the Cybertruck pick-up and facelifted Model 3 sedan – occurred in 2023, with the former not sold globally and the latter an updated model, not an all-new car.
It is facing growing pressure from Chinese brands at the lower end of the electric-car market – the cheapest Tesla in Australia starts from $55,000, compared to $35,000 for the most affordable compact EVs – as well as the slowing demand for vehicles facing all car brands.
It is due to address a lack of new product with an updated Model Y expected imminently, as well as “more affordable” models entering production by the middle of the year.
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