BYD outpaces Tesla with 41% growth, selling 1.76m EVs in 2024

Tesla, the world’s leading electric vehicle (EV) maker, has seen a decline in sales for the first time in over a decade. The company, helmed by billionaire Elon Musk, delivered 1.79 million cars in 2024, a slight 1% drop from the previous year’s 1.8 million. Despite slashing prices throughout the year to attract buyers, Tesla’s dominance is now under threat from fierce competition, particularly from China’s BYD.

BYD, a rising star in the EV market, reported a record 1.76 million EV sales in 2024. The company’s growth is largely attributed to the surge in demand for hybrid vehicles, with overall vehicle sales jumping more than 41% year-on-year, totaling over 4.2 million units.

Iran war sparks panic at the pump as gas prices surge 27%

US lawmakers push new EV tax to close $275bn road funding gap

Unlike Tesla, which counts China as a major market, BYD has built a strong presence in its home country. The Chinese company now commands 90% of its sales domestically, where intense competition has driven prices down and government subsidies have encouraged consumers to replace old vehicles with cleaner alternatives.

While Tesla struggles in its battle to retain its position, BYD’s growth continues to gain momentum. “Our performance in 2024 reflects the growing trust of consumers in BYD’s ability to deliver high-quality EVs at competitive prices,” said Wang Chuanfu, CEO of BYD.

Global demand for EVs has cooled in key markets such as the US and Europe. The higher borrowing costs since 2022 have also made electric cars less affordable, further hampering Tesla’s ability to grow its sales. In response, Musk has pointed to the rising interest rates as a factor contributing to slower sales, adding pressure to the company’s performance.

Despite the challenges, Tesla has started to recover, posting a 2% increase in car deliveries in the final quarter of 2024, with 495,000 cars delivered. However, this was still short of analysts’ forecasts of 500,000, leading to a dip in Tesla’s stock price. Christopher Carey from Carnegie Investment Council noted, “If you don’t meet expectations, it can be pretty tough out there.”

The EV market is becoming increasingly competitive, with traditional carmakers like Volkswagen, Ford, and General Motors scaling back their EV ambitions due to softer demand. Meanwhile, BYD has been expanding its reach beyond China, targeting emerging markets despite challenges abroad.

In Brazil, BYD faced a setback when authorities halted the construction of a factory due to reports of poor worker conditions. The company swiftly cut ties with the construction firm involved and reaffirmed its commitment to adhering to local laws.

Globally, the shift to electric vehicles is gaining momentum, with BYD’s sales contributing significantly to the record-breaking global EV sales figures in 2024. However, the geopolitical climate adds uncertainty, as trade disputes between China and the West have led to tariffs on Chinese-made EVs in both Europe and the US.

The European Union, in particular, has imposed tariffs of up to 45.3% on imports of Chinese-made EVs, while the US has introduced a 100% duty. As tensions rise, BYD remains focused on its strategy of expanding in emerging markets, with plans to further strengthen its foothold abroad.

As BYD races to close the gap with Tesla, the future of the electric vehicle industry seems poised for a dramatic shift. Tesla’s once unchallenged leadership is now being tested by BYD’s relentless rise, and the coming years will likely determine who will lead the global EV revolution.