Tesla may have had a weaker 2024 than it had hoped for, but it was still enough to surpass its luxury rival, Audi, in global sales. The German automaker sold 1.67 million vehicles last year, and that represents a 12 percent decrease from 2023. At the same time, Tesla was able to deliver 1.79 million vehicles.
This is bad news for Audi, an automaker that has had an identity crisis over the past few years. From the looks of it, its struggles are being blamed on intensifying competition from both Europe and China, as well as weak demand for its electric vehicles, according to Bloomberg. It’s banking on newly-released vehicles, like the A6 E-Tron, Q6 E-Tron A7 and Q3 to help make up the difference going forward.
Still, Tesla accomplished these sales feat with its own issues. I mean, it just posted its first global deliveries decline in over a decade – moving an aforementioned 1.79 million vehicles in 2024. That’s down slightly from the 1.81 million it delivered in 2023. Bloomberg says it only narrowly kept its lead over BYD as the top electric vehicle automaker.
Here’s how Tesla and Audi got to this position, according to Bloomberg:
Tesla’s rapid expansion in the preceding few years positioned the company to take advantage of any slip-ups by incumbents. Its Model Y sport utility vehicle ranks among the world’s best-selling cars and is getting a facelift this year.
Germany’s automakers, meanwhile, are contending with tepid demand for luxury cars in China, where a recovery remains uncertain and local manufacturers are pushing further upmarket. In Europe, EV sales are below expectations after several countries cut subsidies. The problems led to a wave of profit warnings last year, including from Volkswagen, Mercedes-Benz Group AG and BMW AG.
Manufacturers have started paring production in response to their sales slowing down, with Volkswagen reducing capacity at its namesake brand. Audi plans to close a site in Brussels because of poor demand for the electric Q8 e-tron sport utility vehicle made there.
I really hope Audi can figure its shit out. I’ve been a longtime fan of the brand after growing up around cars like the B7 RS4 and the original Audi R8. Right now, the company is in a bit of a transitional period – not unlike other automakers, to be fair. I recently drove its new A6 and S6 E-Tron electric liftback, and it gives me a lot of hope that Audi is on the right track once again. It has a lot of ground to make up for after a few years of uninspiring products.