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Tesla's Global Market Crown Slips as Deliveries Decline and Chinese Rivals Surge

Mover TrackerTuesday, Jan 7, 2025 5:36 pm ET

1min read

In recent events, a Tesla Model S caught fire while charging at a Supercharger station in Pontarlier, France—a small community near the Swiss border. This incident prompted a rapid response from local firefighters who successfully extinguished the fire. Tesla has commenced an investigation into the cause of the blaze, and the affected charging station has been temporarily closed.

Initial suspicions suggest that the origin of the fire might be linked to the vehicle's battery pack. However, a comprehensive investigation is underway to confirm the exact cause. Despite the fact that electric vehicle (EV) batteries can occasionally catch fire, statistical data indicates that their fire rates are not higher than those of traditional gasoline vehicles. Determining the cause of such fires is crucial for enhancing the safety of electric vehicles.

In other developments, Tesla announced its 2024 full-year delivery numbers, which revealed a decrease to 1.79 million vehicles from 1.81 million the previous year, marking the first annual decline in sales since 2015. This shift signals the intensifying competition Tesla faces within the global electric vehicle market and highlights the rapid rise of Chinese automakers, such as Geely, which surpassed Tesla in the market share rank during the fourth quarter of 2024.

Historically, Tesla held the top position globally in the electric vehicle sector with a market share of 16.5% in 2021, but this figure has since halved to 8.1% by 2024. In contrast, companies like China's BYD and Geely have shown significant growth. BYD's market share surged from 9.5% in 2021 to 28.2% in the fourth quarter of 2024, a threefold increase. Geely, which has doubled its share from 4.4% in 2021 to 8.8% in 2024, has successfully overtaken Tesla to become the world's third-largest electric vehicle company.

Also notable is the entry of Xiaomi into the electric vehicle market, debuting in the 21st position globally in 2024, exhibiting significant potential. Xiaomi has ambitious plans, aiming to deliver 300,000 units by 2025, which could propel it into the top 15 global electric vehicle companies, further intensifying competition in the sector.

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