In a remarkable achievement, Tesla Inc. has surpassed one of Germany's most prestigious premium car brands, Audi, in global car sales for the first time. Despite facing challenges and selling fewer vehicles than expected, Tesla delivered an impressive 1.79 million vehicles in 2024, outpacing Audi's 1.67 million units sold.
Audi's struggles with intensifying competition in Europe and China, coupled with weak demand for its electric models, allowed Elon Musk's Tesla to take the lead. While Tesla's year was not without its own issues, including its first annual deliveries decline in over a decade, the company's rapid expansion in previous years positioned it to capitalize on any missteps by incumbent automakers.
The Tesla Model Y sport utility vehicle, which ranks among the world's best-selling cars, played a pivotal role in the company's success. With a facelift planned for this year, the Model Y is poised to further solidify Tesla's position in the market.
On the other hand, German automakers like Audi faced tepid demand for luxury cars in China, where the recovery remains uncertain, and local manufacturers are pushing further upmarket. In Europe, electric vehicle sales fell below expectations after several countries cut subsidies, leading to a wave of profit warnings from major players like Volkswagen, Mercedes-Benz, and BMW.
Audi's sales declined in key markets such as Germany, China, and North America, with deliveries of fully electric models dropping by 8% to around 164,000 units. In response, manufacturers have started paring production, with Volkswagen reducing capacity at its namesake brand and Audi planning to close a site in Brussels due to poor demand for the electric Q8 e-tron sport utility vehicle produced there.
Audi aims to update models like the A7 sedan and Q3 SUV this year to bolster sales, while also introducing numerous new plug-in hybrids, according to Chief Executive Officer Gernot Döllner.