Tesla sells fewer cars: This is what analysts say

After more than a decade, the American manufacturer is selling less than the year before. But it is growing in China and has big news in store for 2025

Photo by: Tesla

By: Francesco Barontini

Jan 13, 2025 at 5:24am ET

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For the first time in many years, Tesla failed to meet expectations and sold less than expected. Not only that, it is selling less than the previous year after more than a decade. Analysts have been keeping an eye on the Elon Musk-led company for some time now and trying to work out how much to worry.

In reality, the situation does not seem as serious as one might think at first glance. There are many variables at play, and when you consider them all together, Tesla is still a healthy company. Let's see why.

China saves Elon Musk

The first sign of Tesla's good shape is its sales in China. According to data reported by Reuters, sales in the world's largest car market increased by 8.8 per cent in 2024 compared to 2023, exceeding 657,000 registrations, which accounted for 36.7 per cent of the total number of cars delivered worldwide by the company. China is the second-largest market after the US, where sales, however, fell to 675,000 units (with the share dropping below 50 per cent for the first time).

Tesla sales in the USA: 675,000 cars
Tesla sales in China: 657,000 cars

The restyled Tesla Model 3 introduced in late 2023

Thanks to China, Tesla achieved two great, interlinked results. It remained the world's leading electric car manufacturer with 1,785,570 cars delivered, and it managed to keep up with BYD, which grew a lot but on the zero-emission car front stopped at 1.76 million.

There will be new growth in 2025

Looking at the numbers, however, Tesla seems set to cede the sceptre of electric car king as early as next year. BYD, which is going strong in China, will also expand in Europe with models that will do better than those on sale to date. However, the last word has not been said.

Among the projects in the pipeline is the Cybercab

Photo by: InsideEVs

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Tesla has also paid the price for a fairly obsolete range in 2024. There are two leading models, the Model 3 and the Model Y. It is precisely the Model Y, the world's best-selling car in 2023, that is about to undergo a fairly radical overhaul. On its own, it could drive up sales quite substantially.

Tesla Model Y (2025)

Photos by: Tesla

Three-quarter back left

But Tesla is also working on a mysterious and innovative Model Q, which is expected to cost around £25,000 and will breathe new life into the brand. In short, Tesla ended the year on a downward slope, but it is still too early to speak of a crisis.