It doesn’t seem to be a good year for Tesla. After the record results of 2023, when it was not only the most popular pure electric car manufacturer in the world, but also the brand of the best-selling battery vehicle on the planet (the Model Y), it is not growing as before. The latest data collected by JATO Dynamics for the first half of this year show that Elon Musk’s company is losing ground both in the United States and in Europe: sales have decreased of 8% and 13% respectively.
While the general public is not entirely enthusiastic about electric cars, overall demand has grown in both regions. New, more competitive models being introduced on both sides of the Atlantic are attracting more people, despite growing uncertainty about incentives and the future plans of the OEMs that produce these cars.
Less market share, as expected
The first obvious consequence of the drop in sales Tesla is its market share. While the brand’s volume dropped from 185,200 units in the first half of 2023 to 161,300 units in first half of 2024total registrations of pure electric cars in Europe increased by 1.7% in the same period.
Tesla sales in the first half of the year
This means that Tesla’s market share within the European BEV market has dropped from 19.8% in the first half of 2023 to 17,2% this year. Tesla was the automaker with the biggest decline in BEV market share in Europe in the first six months of this year, trailing only Volkswagen Group, which fell 3.3 points from 22% to 18.7%. Tesla and Volkswagen lost ground to Geely Group, which was helped by strong results from the Volvo EX30, and BMW Group, which continues to reap success with its latest models. Also Chinese brands have grown, especially thanks to BYD.
Market shares in the first half of the year
The situation in the United States is similar. Tesla’s sales volume fell from 324,900 units in the first half of 2023 to 299,200 units this year. While overall BEV sales increased 7.6% in the same period, Tesla’s share fell from 59.8% in 2023 to 51.2% in 2024. Unlike Europe, Tesla is still a dominant player in its home market, leaving all its rivals behind. However, it is important to mention the solid results achieved by Ford, with a 48% increase, Hyundai with a 34% increase, Kia with a 110% increase and Rivian in fifth place with a 77% increase.
See all the news on Motor1 Numbers The reasons
The first reason for Tesla’s loss of market share is obvious: growth cannot continue forever, especially when the range is still limited and rather aged (The Model 3 is over 8 years old, while the Model Y is now 5 years old.)
Tesla Model 3 Performance
The author of the article, Felipe Munoz, is Automotive Industry Specialist at JATO Dynamics.
