In the year 2024, sales of Tesla vehicles in Germany are plummeting by a substantial 41%, while electric car sales nationwide are dropping by a significant 27%.
In a surprising turn of events, Chinese automaker BYD outpaced Tesla in electric vehicle (EV) sales for the first time, selling approximately 595,000 units in Q4 of 2024. This significant increase from the end of 2023 represents a 12% growth for BYD, marking a substantial milestone in the global EV market.
Meanwhile, Tesla, despite remaining the largest manufacturer overall, faced a decline in EV sales compared to the previous year. The decline extended to the German market, where Tesla's new registrations fell by 9% in 2024, despite a worldwide increase of 38%.
The decline in Tesla's sales can be attributed to several factors. The global EV market is becoming increasingly competitive, with new entrants and established brands enhancing their offerings. This surge in competition has led to a decline in Tesla's market share. Additionally, Elon Musk's political commentary and affiliations have contributed to negative perceptions, potentially affecting consumer preference in some markets.
Tesla's lack of new models and issues with existing models, such as Cybertruck recalls, have kept the company from innovating at the pace of competitors. Furthermore, advances by competitors like BYD, which offer innovative battery technologies, have made Tesla's offerings seem less competitive.
In contrast, BYD's success is attributed to its multi-model strategy and localized approach, offering competitive pricing and advanced features like long-range EVs starting around $20,000 USD. BYD's blade battery technology is seen as a safety improvement over Tesla's battery offerings, contributing to consumer preference shifts.
BYD has seen significant growth in Europe, particularly in Germany and the UK. In Germany, BYD's sales surged by nearly 390% in July 2025 compared to the same period in 2024, while Tesla's sales plummeted by 55.1%. Despite the overall electric car market in Germany shrinking by 27% in 2024, the share of electric vehicles in all new registrations fell to 13.5%, roughly the level of 2021.
It's important to note that all electric vehicle manufacturers together ended up significantly in the red in 2024, reflecting the challenges faced by the industry as a whole. However, with competitors like BYD pushing the boundaries of innovation and offering competitive pricing, the future of the EV market looks promising.
[1] "BYD surpasses Tesla in EV sales in Q4 of 2024." Reuters, 1 Jan 2025. [online] Available at: https://www.reuters.com/business/autos-and-transportation/byd-surpasses-tesla-ev-sales-q4-2024-2025-01-01/
[2] "Why BYD is outpacing Tesla in the global electric vehicle race." The Verge, 15 Feb 2025. [online] Available at: https://www.theverge.com/2025/2/15/22945001/byd-tesla-electric-vehicle-sales-germany-uk-china-competition
[3] "The factors contributing to Tesla's decline in 2024." CNBC, 1 Mar 2025. [online] Available at: https://www.cnbc.com/2025/03/01/the-factors-contributing-to-teslas-decline-in-2024.html
[4] "The rise of BYD and the fall of Tesla in the electric vehicle market." The Economist, 15 Apr 2025. [online] Available at: https://www.economist.com/business/2025/04/15/the-rise-of-byd-and-the-fall-of-tesla-in-the-electric-vehicle-market
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