2 days Ago By Jordan Mulach
US electric vehicle (EV) giant Tesla has recorded its first year of sales decline, but it wasn't enough for Chinese rival BYD to emerge victorious. or signup to continue reading Throughout 2024, Tesla delivered 1,789,226 vehicles globally, a 1.1 per cent drop compared to its record figure of 1,808,581 in 2023.
The 2024 tally is still an improvement on the 1,313,851 deliveries it , which led to a 39 per cent increase the year after. Last year's decrease could've been larger had it not been for a record fourth quarter for Tesla, in which it delivered 495,570 EVs globally, breaking its previous high of 484,507 deliveries in the same period one year prior. The final-quarter surge was also enough for Tesla to fend off BYD for the global EV sales crown, with the Chinese carmaker delivering 1,764,992 battery-only passenger vehicles to global customers in 2024.
While this was just 24,234 deliveries shy of Tesla, overall BYD delivered 4,272,145 'new energy vehicles' (NEVs), which includes EVs and plug-in hybrids (PHEVs). For Tesla, the SUV and sedan continue to be its volume products, accounting for 1,704,093 deliveries in 2024, or 95.2 per cent of its total.
The two models are the only vehicles it sells in Australia, where its annual deliveries are soon to be announced – and it's likely the annual tally will have dropped even further than in global markets. Tesla's Australian sales have declined in so far this year, with the EV brand recording 34,754 deliveries to the end of November – 20.9 per cent lower than to the same point in 2023.
The drop in Tesla's deliveries this year has been a major driver in the cooling of EV sales growth in Australia; in contrast, hybrid and plug-in hybrid sales have risen sharply. The facelifted 'Highland' Model 3 was expected to drive a sales increase this year, while the upcoming 'Juniper' update to the Model Y is anticipated to boost deliveries after its rumoured 2025 launch. Heavy discounts of thousands of dollars across both EVs earlier this year haven't been able to boost sales, as supply now well and truly outstrips demand.
As reported last month, Tesla's share price hit a record high in December 2024, with its biggest shot in the arm coming after Donald Trump was voted in as the next US President on November 5. Tesla CEO Elon Musk had thrown support behind Mr Trump in the lead-up to the election, despite the President-elect making EVs a major target in his campaign, which included him falsely claiming the US government has mandates that will require electric vehicle (EV) sales to reach 100 per cent. In November, shortly after the US election, news agency reported word from insiders close to Mr Trump that the US federal tax credit for EVs, which can be worth up to US$7500 (A$11,625), will be axed in early 2025.
Though some may see this as a threat to Tesla, Mr Musk welcomed the move and it is more likely to harm his potential rivals, which need to trade on their price advantage in an effort to dislodge the EV sales leader. Mr Trump is also reportedly looking to create pathways to expedite making fully autonomous cars legal on US roads. Autonomous driving has been a major focus of Tesla, not only via the 'Autopilot' and 'Full Self-Driving' systems in its current model range, but also with its upcoming driverless Cybercab robotaxi.
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