Tesla’s annual sales declined by 1% to 1.79 million cars in 2024, marking the first time the US EV giant has seen a drop in its sales over a decade. The company still holds the title of world’s largest EV maker but is facing increased competition from Chinese rivals like BYD.
Despite being the market leader, Tesla had to engage in price wars and offer incentives such as three months of free Supercharging and its Full Self Driving beta software to stay competitive. Its shares plummeted by 8% on the day of the announcement. In contrast, Chinese companies saw a rise in sales, with BYD’s deliveries increasing by 12% and Nio and Xpeng following suit.
Tesla acknowledges that Chinese automakers are gaining ground and may surpass its market share if trade barriers are removed. The company remains committed to innovation and will continue to adapt to the changing landscape of the EV industry.
Source: https://www.businessinsider.com/tesla-flags-china-ev-makers-having-great-week-2025-1