In the second quarter of 2024, Tesla’s gross margin reached a new low after consecutive quarterly declines since Q1 2022.
However, thanks to a recent surge in deliveries, the American automaker and trailblazer in bringing battery electric vehicles (BEVs) to the mass market continues to hold the largest global market share among BEV sales.
Analysis by EV Volumes and Inside EVs reveals that Tesla maintained a consistent market share of 19 percent in the past year and the first three months of 2024.
BYD: A Formidable Competitor
Chinese conglomerate BYD, known for producing electric vehicle batteries, electronics, plug-in hybrids, and fully electric vehicles, is rapidly closing the gap with Tesla.
Between 2021 and 2023, BYD’s market share grew by ten percentage points, according to Statista’s Florian Zandt.
The BEV market share of legacy automakers like Volkswagen and Geely-Volvo, at 7 percent, is on par with SAIC, which includes the joint venture between the Chinese state-owned SAIC Motor, Wuling, and General Motors.
While BYD’s market share dipped by two points in the first quarter, it was only 18,000 cars behind Tesla’s deliveries between April and June 2024, highlighting the intense competition between these two companies.
Differing Market Strategies
BYD primarily targets a broader consumer base with its BEVs, while Tesla caters to a more premium segment with higher-priced products.
Impact of Increased Tariffs on Chinese-Made Cars
The recent increase in tariffs on Chinese-made cars from 25 to 100 percent, effective in early August, could potentially influence the market dynamics. This move aims to boost domestic sales in the U.S. but may escalate tensions between China and the United States.
Global Electric Vehicle Sales and Market Dominance
According to EV Volumes, global electric vehicle sales reached 14 million units in 2023, with 70% being BEVs. Notably, China remains the dominant player, holding 65% and 59% of the market share for hybrid and BEV exports, respectively, despite the tariff increase.