Tesla moved 1.79 million vehicles to buyers last year, which is a small drop from 1.8 million in the year before. The production numbers also dipped a bit, landing at 1.77 million vehicles. Even the much-anticipated Cybertruck, Tesla's cutting-edge pick-up, fell short of sales expectations. Alongside the Model S and Model X, the Cybertruck represented less than 5% of overall sales. The Model 3 and Y still reign supreme as Tesla's top sellers, making up the bulk of their sales.
Electric Vehicle Market Struggles
Tesla's difficulties are not unique; the entire electric vehicle sector is facing a downturn. Global obstacles like ongoing inflation, increasing interest rates, and persistent supply chain issues are affecting what consumers want. Additionally, shifts in subsidy regulations in various countries are further slowing down electric vehicle sales.
BYD's Rising Success
In contrast to Tesla's challenges, BYD is experiencing remarkable growth. The Chinese automaker sold a stunning 4.27 million vehicles in 2024, up from 3 million the prior year. A major part of this achievement is the rising appeal of plug-in hybrids in China, with BYD selling 2,485,378 of these models in 2024 alone, thanks to favorable government subsidies.
Volkswagen's Troubles
On the flip side, the German automotive giant Volkswagen (VW) faces its own set of problems. VW projects it sold 9 million vehicles in 2024, which is 200,000 units less than in 2023. Besides the troubles affecting the broader electric vehicle market, Volkswagen grapples with high production expenses in Germany, lower productivity rates, and heavy reliance on the Chinese market. In China specifically, VW has seen a sharp decline in sales due to fierce competition from local companies like BYD.
Data Protection Issues
To complicate things further, Volkswagen is also dealing with data protection concerns. A recent security flaw was found at VW's subsidiary, Cariad, which develops software for VW vehicles. Sensitive location data for about 800,000 VW, Audi, Seat, and Skoda vehicles was left exposed for months.
New Competitor Emerges
Meanwhile, another competitor is emerging in the electric vehicle arena. Xiaomi, known primarily for its smartphones, made its entry into the e-car market in 2024. In its first year, around 130,000 Xiaomi SU7 vehicles were sold. The company plans to ramp up its efforts in 2025, aiming to double its sales numbers.
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