And again, we return to our favorite column: Tesla vs. BYD electric cars. The latest report on car sales reveals a notable shift, with Tesla experiencing its first decline in sales since 2020, while BYD’s sales have plummeted by almost 1.5 times.
Tesla Electric Car Sales: Worse Than Expected
This time, even Troy Teslike, renowned for his accurate estimates on Tesla sales, found himself significantly off the mark. Among various forecasts, his prediction turned out to be the closest to reality.
Analysts had high hopes for Tesla’s sales in the first quarter of 2024. However, the actual figures came as a disappointment. Cumulatively, Tesla shipped 386,810 electric vehicles to customers from January to March, marking an 8.5% decrease from the same period in 2023.
Tesla Auto Sales for Q1 2024
Breaking down the numbers, Tesla produced a total of 433,371 vehicles, delivering 386,810 units to customers. The share of leased cars purchased stood at 2%. These figures represent a stark contrast to the previous quarter, with a 20% drop in sales and production.
Chinese Market Dynamics
While Chinese-built Tesla sales saw a marginal year-over-year increase in March, concerns linger regarding demand. Reports indicate significant Model Y inventories in the U.S. and declining interest in the Model 3 in Europe. Despite this, Tesla’s March sales in China offer a glimmer of hope for a potential rebound.
Factors Behind the Decline
Tesla attributed the decline in production and sales to several factors, including the ramp-up phase for the updated Model 3 at its Fremont plant, plant shutdowns, and logistical challenges stemming from external disruptions like the Houthi attacks on ships in the Red Sea and the arson attack on the Gigafactory in Berlin.
Awaiting Financial Report
The full financial report, scheduled for release on April 23, will provide further insights into Tesla’s performance. It’s anticipated that key financial indicators may reflect the impact of intensified competition and diminishing profitability, exacerbated by a price war.
BYD’s Struggles
On the other side of the spectrum, BYD, backed by Warren Buffett, faced a significant setback. The company shipped 300,114 all-electric vehicles in the first quarter, marking a 42% decline from the previous quarter’s results.
Global Electric Vehicle Market Outlook
Despite these challenges, the global electric vehicle market continues to expand. Estimates suggest a sales volume of 17.8 million units in 2024, with electric vehicles accounting for 25% of total sales. This growth trajectory underscores the increasing significance of electric vehicles in the automotive landscape.
As the electric vehicle market evolves, both Tesla and BYD face unique challenges and opportunities. The coming months will be crucial in determining their trajectories amidst a rapidly changing automotive industry landscape.
Source https://ev-volumes.com/