Electric vehicle (EV) sales have taken a hit for the first time in a decade. Tesla has reported a decrease in sales as well to 1.79 million vehicles. This is the first year-over-year drop since 2011, Tesla said. Global EV sales have dropped by 1.1% in 2024, AP News said. 

Despite this, Tesla’s sales in China reached a record high of over 657,000 cars, which accounts for 36.7% of the company's total deliveries, Reuters said. 

Tesla’s global demand for EVs is still expected to grow, AP News said, with projections for 15.1 million battery EVs to be sold this year. This would further represent a 30% increase in market share. 

Tesla experienced its first annual decline in deliveries for 2024, delivering 1.79 million vehicles, down from 1.81 million in 2023. Fourth-quarter deliveries reached 495,570, falling short of market expectations, which were over 500,000, according to NBC News.

Volkswagen’s deliveries also fell by 2.8% to 383,100 units, compared to 394,000 in 2023, FT.com reported. This decline is attributed to an increase in competition in key markets like China, where Volkswagen saw a decrease in deliveries by 8.3%, Reuters said.

Additionally, Rolls-Royce plans to launch a new EV this year despite the declining demand for the product, according to The Sun. These developments greatly highlight the dynamic nature of the EV market worldwide, including varying performances across manufacturers and regions. 

China’s car sales maintained growth, and EV and plug-in hybrid sales reached record highs driven by aggressive pricing strategies. Additionally, Reuters said the increase in sales was due to government subsidies aimed at promoting environmentally friendly vehicles.

Tesla's shares fell by 7% after the company reported its first-ever annual decline in deliveries, according to NBC News. This drop comes despite a significant 63% increase in its stock during 2024, highlighting the contrast between past performance and current challenges.

Local brands such as BYD and Geely have benefited, although foreign manufacturers such as Toyota and Volkswagen have lost market share, according to Reuters. 

In addition, Germany’s EV market saw a 27% decline in new registrations due to the removal of government purchase incentives. According to Welt, Tesla and Opel were affected by this decline, while BMW and Skoda increased their new registrations. 

There is growing uncertainty in the United States regarding EV policies under President-elect Donald Trump. Potential changes to tax incentives and tariffs could impact EV production and sales, leading manufacturers to adopt a cautious approach, AP News said. 

As government incentives for electric vehicles are expected to decrease, consumers are increasingly purchasing them before the benefits diminish. This has led to a temporary surge in sales volume, according to CBT News.

These developments underscore the rapidly evolving and highly competitive landscape of the global EV market. While major manufacturers like Tesla and Volkswagen are grappling with sales declines, the overall trend remains one of growth, especially in emerging markets such as China. 

In regions like Europe and the U.S., shifting policies and government incentives are creating both opportunities and challenges for automakers. The pressure to meet stricter emissions targets, combined with an influx of new competitors and changing consumer preferences, is reshaping the strategies of traditional automotive giants. 

This landscape illustrates how dynamic the EV market is, with manufacturers adapting to varying regional demands, technological advancements, and a complex mix of economic and regulatory factors. The competition is strong, and how companies navigate these challenges will significantly impact their market share in the years to come.