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In the fourth quarter, Tesla exceeded delivery expectations by handing over 484,507 vehicles, slightly surpassing analysts' estimates. However, China's BYD Co. claimed the top spot in global electric car sales by delivering 526,409 fully electric vehicles during the same period. Despite Tesla achieving its annual target of 1.8 million deliveries, it fell short of Elon Musk's ambitious projection from a year ago when he suggested the potential for 2 million cars. Analysts anticipate Tesla delivering over 2.1 million vehicles in 2024, although concerns linger over the overall demand for electric vehicles.
- The change in rankings underscores China's increasing influence in the automotive industry, with the country likely surpassing Japan as the world's largest passenger-car exporter in 2023. Although BYD outpaced Tesla in EV sales, the latter remains dominant in the US market, generating higher revenue and profit due to its focus on higher-priced vehicles like the Model Y and Model 3. BYD, with a robust presence in China, does not sell in the US, where import tariffs and other obstacles would apply.
Why it matters
Despite Tesla's strong performance, there are challenges, such as the delayed launch and slow ramp-up of the Cybertruck. Musk even acknowledged the difficulties in reaching volume production and positive cash flow. Analysts remain cautious about its impact on the core pickup market used for work purposes, projecting limited penetration.
