Tesla Maintains Lead in BEV Market Despite Margin Decline in Q2 2024

Tesla`s gross margin dropped to a new low in Q2 2024, but it still retained the largest market share among all battery electric vehicles (BEVs) sold worldwide. Between 2021 and 2023, the Chinese company BYD grew its market share by ten percentage points. The BEV portfolio of legacy automakers like Volkswagen and Geely-Volvo stood at seven percent. BYD focuses on providing BEVs to a general consumer base, while Tesla`s products have a higher price tag. The increase of tariffs on Chinese-made cars may help mitigate this difference. In 2023, 14 million electric vehicles were sold globally, 70% of which were BEVs. China is the biggest exporter and market for both hybrids and BEVs.