In Q2 2024, Tesla’s gross margins hit a new low after declining every quarter since Q1 2022. With increased deliveries over the past few months, the US automaker, which pioneered bringing battery electric vehicles (BEVs) to the mass market, still holds the largest market share of all BEVs sold worldwide.
Over the past year and the first three months of 2024, Tesla’s share remained steady at 19%, according to analysis by EV Volumes and Inside EVs over the same period.
However, competition is fierce.
As Statista’s Florian Zandt shows in the chart below, the Chinese conglomerate, which produces plug-in hybrids and fully electric vehicles, as well as batteries and related electronics for standalone electric vehicles, increased its market share by 10 percentage points between 2021 and 2023. Long-established automakers such as Volkswagen and Geely Volvo have a BEV portfolio of 7 percent, putting them on par with SAIC Motor, which includes state-owned SAIC-Wuling joint ventures and General Motors.
BYD’s market share fell 2 percentage points in the first quarter, but it’s still just 18,000 vehicles short of Tesla’s deliveries from April to June 2024, showing how close the head-to-head battle between the two companies is.
BYD is focused on bringing BEVs to the more mainstream consumer demographic, while Tesla’s products are expensive.
That gap may be mitigated somewhat by the increase in tariffs on Chinese-made cars from 25% to 100%, announced in May and taking effect in early August, a move that is likely to boost domestic sales while also raising tensions between the People’s Republic of China and the United States.
According to EV Volumes, 14 million electric vehicles will be sold globally in 2023, with 70% of those being BEVs. However, 84% of all light vehicles sold will still run on traditional internal combustion engines or other non-electric fuel sources.
China was the largest exporter and market for hybrids and BEVs, with shares of 65% and 59%, respectively.
From Zerohedge.com
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