Tesla has seen its annual sales decline for the first time in a long time. But does this mean the beginning of the end for the electric vehicle pioneer? Let's take a look at what the numbers say and why China plays a key role in the company's future
Tesla, known for pushing the boundaries of the automotive industry, experienced something that even its harshest critics did not expect – a decline in annual sales after more than a decade of steady growth. While many headlines in the media may seem apocalyptic, the picture is not as bleak as it seems.
China: a solution at the right time
First, let's stop in China, where Tesla enjoys star player status. Sales there grew by 8.8% to more than 657,000 vehicles sold, which represents what 36.7 % of Tesla's total global salesChina, with its huge customer base and rapidly growing electric vehicle infrastructure, is a gold mine for Tesla, especially with its Shanghai factory pushing the boundaries of capacity with its production.
V United States of America But the numbers are a bit more worrying. Sales fell to 675,000 units, which is less than half of global sales for the first time. The US market is clearly becoming more competitive, and Tesla needs to find a way to maintain its primacy. Tesla has become like the iPhone, in a way a standard and nothing special. It is experiencing utilitarian status.
Tesla in key markets in 2024:
- China: 657,000 vehicles sold (+8.8 %)
- USA: 675,000 vehicles sold
Battle with BYD: who is the real king of electricity?
This year's achievement brought Tesla another significant success - it retained the title of the largest manufacturer of electric vehicles with a total of 1,785,570 vehicles sold, while its main competitor BYD remained at 1.76 million cars sold. BYD is extremely strong in the Chinese market, but for now it is still somewhat behind in the field of fully electric vehicles.
Criticism of models and possible turning points in 2025
One reason for the slight stagnation is the obsolescence of Tesla's current lineup. While the Model 3 and Y still dominate the market, consumers are increasingly craving freshness and technological upgrades.
Fortunately, Tesla has promised a revamped version on the horizon. Model Y, which is quite up-to-date. But the project that is generating the most excitement is Model Q – a revolutionary affordable model, expected to cost around £25,000 (around €29,000). If Musk’s price promise can be met, this car could shake up the global market. At the same time, we are all witnessing the Cybercab, which is expected to surprise with deliveries by the end of this year.
Why it's not time to panic yet
Although sales figures are lower than the year before, it is important to look at the bigger picture:
- Development of new models: Forecasts for 2025 include more new releases, which could mean a big jump in sales.
- Infrastructure investments: The Gigafactory in Shanghai is operating at incredible speed, increasing production volumes.
- Expansion into Europe: Although BYD is threatening to enter the European market, Tesla still enjoys great popularity due to its network of superchargers and autopilot technology.
Final score
Tesla is no longer the young, fearless brand that was once the only electric car company – the competition is growing. But with a strong presence in key markets like China and ambitious plans for the future, it’s still clear that Tesla has plenty of tricks up its sleeve. If Musk can deliver on his vision of an affordable electric vehicle and revamp the current fleet, Tesla could make history again in 2025. It could also become the first to offer a fully autonomous vehicle.
Of course, we'll have to wait for the first test drives. Q model and the redesigned model Tesla Yto see if the Tesla boss has “pressed the right pedal” again.
Tesla is currently at a crossroads, or is it not? But it is far from the end of the dream built by Elon Musk. Rather, it is a new chapter. And if there is one thing we are used to with Tesla, it is its ability to defy all expectations. And we believe that this year it will surprise us with something else. This will most likely be a really good FSD, which will enable autonomous driving for all Teslas in recent years.
