Chinese automaker BYD made headlines at the end of last year by setting a new record for electric vehicle (EV) sales, surpassing Tesla as the worldwide leader with over 526,000 units sold in the fourth quarter of 2023. However, 2024 has brought a different narrative, with BYD witnessing a more than 40% drop in sales from its previous high mark.
This decline might seem like an opportunity for Tesla, which reclaimed the EV sales crown in Q1 amid BYD’s faltering sales. However, Elon Musk’s car brand has faced challenges of its own this year. Tesla underperformed its last quarterly total by about 20%, marking an 8.5% decrease from its position at this time in 2023. This is the first time the company has seen its quarterly deliveries fall in nearly four years.
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The simultaneous drop in sales for both automakers coincides with an anticipated slowdown in Chinese electric vehicle sales. EV transactions in China grew by 36% a year ago and surged even higher at 90% in 2022. However, experts are now projecting a growth rate of just 22% for this year.
China stands out as the largest market for EVs globally, currently accounting for 60% of the global electric fleet. The Chinese market was responsible for over 90% of BYD’s total sales and nearly a quarter of Tesla’s revenue last year. Consequently, if the EV slowdown persists in China, it could lead to further reduced quarterly sales totals for these automakers.
[JACK ALYMER]
NOBODY SOLD MORE ELECTRIC VEHICLES THAN THIS CHINESE AUTOMAKER DID AT THE END OF LAST YEAR. EVER.
BYD SET A NEW RECORD WITH OVER 526-THOUSAND UNITS SOLD IN THE FOURTH QUARTER OF 2023, OVERTAKING TESLA FOR THE FIRST TIME AS THE WORLDWIDE LEADER.
2024 HAS BEEN A DIFFERENT STORY.
BYD HAS SEEN A MORE THAN FORTY PERCENT DROP IN SALES FROM THEIR PREVIOUS HIGH MARK.
THIS MIGHT SOUND LIKE GOOD NEWS FOR TESLA.
WHICH DID TAKE BACK THE V SALES CROWN IN Q-1 AMID BYD’S DECLINING SALES.
BUT THE ELON MUSK OWNED CAR BRAND HAS EXPERIENCED SOME TROUBLES OF ITS OWN THIS YEAR..
TESLA UNDERPERFORMED THEIR LAST QUARTERLY TOTAL BY ABOUT 20 PERCENT, AND FINISHED 8 AND A HALF PERCENT DOWN FROM WHERE THEY STOOD AT THIS TIME IN 2023.
IT’S THE FIRST TIME THE COMPANY HAS SEEN THEIR QUARTERLY DELIVERIES FALL IN NEARLY FOUR YEARS.
THE DROP FOR BOTH AUTOMAKERS COMES AMID AN EXPECTED SLOWDOWN IN CHINESE ELECTRIC VEHICLE SALES.
EV TRANSACTIONS IN CHINA GREW 36 PERCENT A YEAR AGO.
IN 2022, THEY WERE up EVEN HIGHER, at NINETY PERCENT.
BUT THIS YEAR, EXPERTS ARE PROJECTING A GROWTH RATE OF JUST 22 PERCENT.
NO OTHER NATION BUYS EVS LIKE CHINA, WITH the COUNTRY CURRENTLY ACCOUNTing FOR 60 PERCENT OF THE GLOBAL ELECTRIC FLEET.
THE CHINESE MARKET was responsible for MORE THAN 90 PERCENT OF BYD’S TOTAL SALES AND NEARLY A QUARTER OF TESLA’S REVENUE LAST YEAR.
SO IF THE EV SLOWDOWN CONTINUES IN CHINA, WE COULD SEE MORE REDUCED QUARTERLY SALES TOTALS FROM THESE CARMAKERS.
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