For the first time in over a decade, Tesla’s annual electric vehicle (EV) sales have dropped. The automaker sold 1.79 million vehicles in 2024, a slight decline from 2023 and below analysts’ expectations.

China’s BYD Co. enjoyed a year-end surge to push total sales to 4.25 million passenger cars last year, narrowing its gap with Tesla Inc. as the two vie for the crown of top-selling electric-vehicle maker of 2024.

Tesla, the US electric vehicle giant, celebrated record sales in China in 2024, but analysts warn that sustaining this performance in 2025 could prove challenging as competition with domestic players intensifies.