In the ongoing saga of Tesla versus BYD electric cars, a new chapter unfolds with Tesla reporting a significant downturn in its sales, marking its first decline since 2020. Meanwhile, BYD, the Chinese electric vehicle manufacturer backed by Warren Buffett, faced a staggering collapse in sales, plummeting nearly 1.5 times.

Tesla Electric Car Sales: Worse Than Expected

Even the usually accurate forecasts, such as those from Troy Teslike, failed to anticipate the extent of Tesla’s sales decline. Despite their predictions, Tesla revealed a decrease in electric car sales for the first quarter of 2024, marking a departure from its upward trajectory since 2020.

Analysts had anticipated more favorable results for Tesla’s electric car sales in the first quarter of 2024. However, the reality proved otherwise, with Tesla delivering 386,810 electric vehicles to customers, marking an 8.5% decline from the same period in 2023.

Tesla Auto Sales for Q1 2024

Breaking down the numbers, Tesla’s Model 3 and Model Y accounted for a significant portion of the sales, with a total of 386,810 units delivered. However, this figure reflects a 20% drop compared to the previous quarter. Production figures also saw a slight decline, reaching 433,371 units, down from 494,989 in Q4 2023.

Factors Contributing to Decline

Tesla attributed the decline in production and sales to several factors, including challenges associated with ramping up production of the updated Model 3 at its Fremont plant, plant shutdowns, and logistical disruptions caused by external events such as Houthi attacks on ships in the Red Sea and the recent arson attack on the Gigafactory in Berlin.

New Model 3 Performance

Despite the setbacks, Tesla remains optimistic about its future performance. The company plans to unveil its full financial report on April 23, providing further insights into its financial standing and strategies moving forward.

BYD’s Plunge in Sales

In contrast to Tesla’s woes, BYD experienced a drastic decline in sales, dropping by 42% from the previous quarter. This decline can be attributed to increased competition and seasonally lower demand in the Chinese market, exacerbated by events such as the Chinese New Year.

Global Electric Vehicle Market Outlook

The electric vehicle market continues to evolve, with estimates suggesting a growth in sales despite the challenges faced by individual manufacturers. EV-Volumes predicts global electric vehicle sales to reach 17.8 million units in 2024, marking a 25% increase from 2023, with battery electric vehicles (BEVs) comprising a significant portion of these sales.

As the electric vehicle industry navigates through challenges and competition, both Tesla and BYD face critical junctures in their respective trajectories, with the global market poised for further growth and innovation.