China’s BYD, a prominent player in the electric vehicle (EV) industry, achieved a remarkable 21% surge in sales during the second quarter of 2024, solidifying its position in the rapidly evolving EV market. The company sold an impressive 426,039 EVs between April and June, rapidly closing the gap with its key competitor, Tesla.
According to recent estimates, Tesla’s vehicle deliveries for the same quarter were approximately 12,000 units more than BYD’s sales. However, BYD’s consistent growth and expansion in the EV market are noteworthy, especially after briefly holding the title of the world’s top EV vendor in the previous quarter.
Tesla Anticipates a 6% Decline in Vehicle Deliveries for the April-June Quarter
On Tuesday, Tesla is expected to report a 6% decrease in vehicle deliveries for the second quarter of this year, marking the company’s first-ever consecutive quarterly decline. The U.S. electric vehicle manufacturer is facing significant challenges in the Chinese market and struggling with sluggish demand due to a limited number of affordable new models.
This decline follows a notable drop in deliveries during the first quarter of 2024, amounting to 20.2% compared to the previous quarter. Tesla’s vehicle deliveries reached an all-time high of over 484,000 units in the last quarter of 2023
Tesla Faces Potential Loss of EV Crown to BYD Amid Expected Delivery Shortfalls
Following years of unprecedented growth that solidified its position as the world’s most valuable automaker, Tesla is experiencing a significant slowdown. The company’s deliveries growth is expected to decline sharply in 2024, as the momentum from previous price cuts dissipates.
According to predictions by Barclays, Tesla may witness a record-breaking 11% drop in deliveries for the second quarter, potentially ceding its electric vehicle (EV) market leadership back to BYD. This decline follows a warning issued by Tesla in January, anticipating a substantial decrease in deliveries growth this year.