Tesla outsells Audi for the first time, despite selling fewer vehicles than expected

Tesla has surpassed Audi in vehicle sales for the first time, despite selling fewer vehicles than expected in 2024. While the German premium car brand, Audi, delivered 1.67 million vehicles, a 12 per cent decline from the previous year, Tesla managed to outsell it with 1.79 million deliveries.  

This marks a significant milestone for Tesla, even as the company faced its first annual decline in deliveries in over a decade.

Audi struggles with declining sales

Audi’s sales were heavily impacted by increasing competition in key markets like Europe and China, combined with weak demand for its electric models. In addition to the global decline in luxury car sales, Audi saw its sales drop across major markets, including Germany, China, and North America.  

The company’s fully electric model sales decreased by 8 per cent, with only around 164,000 units delivered. The declining sales trend has led to cost-cutting measures, including reduced production capacity at Volkswagen’s namesake brand and the closure of Audi’s Brussels site, due to low demand for the electric Q8 e-tron.

Tesla’s continued growth amid challenges

Despite facing challenges, including a slight dip in deliveries and increased competition from China’s BYD, Tesla’s rapid expansion in recent years positioned the company to take advantage of Audi’s struggles.  

The US company’s Model Y SUV has become one of the best-selling vehicles worldwide and is expected to receive a facelift this year. Tesla’s ability to maintain its lead in fully electric vehicle sales was bolstered by its aggressive global expansion and positioning as a key player in the EV market.

More from Tech

How ChatGPT is becoming everyone’s BFF and why that’s dangerous America ready for self-driving cars, but it has a legal problem

Audi’s plans for a comeback

In response to its declining sales, Audi has outlined plans to update several models in 2025, including the A7 sedan and the Q3 SUV. The company also intends to introduce new plug-in hybrid models to reignite customer interest.  

CEO Gernot Dollner has promised numerous updates to help strengthen Audi’s position in the market and counteract the challenges posed by growing local competition and slowing demand in key regions.

As both companies continue to face market pressures, Tesla’s dominance in the electric vehicle space looks secure for now, while Audi will need to adapt quickly to remain competitive in the luxury car market.