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Tesla also counts China as a key market, but it has lost ground to rivals as the price war rumbles on.<\/p>\n
Demand for electric vehicles has also softened in other regions, such as the US and Europe, creating challenges for many carmakers. <\/p>\n
Volkswagen, Ford and General Motors were among the companies that cut sales targets or decided to delay investments in EV technology last year. <\/p>\n
At Tesla, its boss Elon Musk has blamed weaker sales in part on the jump in borrowing costs since 2022, which has made it more expensive to buy. <\/p>\n
Analysts have also pointed to increased competition and questions about the brand, as Musk deepens his political involvement, which has been described as controversial.<\/p>\n
Tesla sales slumped in the first half of 2024 before starting to pick up again. In the final three months of 2024, it delivered about 495,000 cars, up 2% year-on-year and a quarterly record.<\/p>\n
But the firm’s share price, which surged more than 60% last year, fell 5% in morning trade, as the figure came in below the roughly 500,000 forecast by analysts. <\/p>\n
“If you don’t meet expectations, it can be pretty tough out there,” said Christopher Carey of the Carnegie Investment Council. <\/p>\n<\/div>\n<\/div>\n
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Last month, Honda and Nissan confirmed that they were holding merger talks, as the two Japanese firms seek to fight back against competition from the Chinese car industry.<\/p>\n
Earlier in the month, the boss of car making giant Stellantis, Carlos Tavares, quit with immediate effect following a boardroom clash.<\/p>\n
His abrupt exit from the company – which owns brands including Vauxhall, Jeep, Fiat, Peugeot and Chrysler – came two months after Stellantis issued a profit warning.<\/p>\n
Some governments have stepped in to protect domestic companies.<\/p>\n
In October, European Union tariffs of up to 45.3% on imports of Chinese-made EVs came into force across the trade bloc.<\/p>\n
The US has also imposed a 100% duty on EVs from China and President-elect Donald Trump is expected to impose further tariffs on imports.<\/p>\n
BYD has still been expanding its foothold in emerging economies.<\/p>\n
But last month, it faced a setback in Brazil – its largest overseas market – with authorities halting the construction of a BYD factory, saying workers lived in conditions comparable to “slavery”.<\/p>\n
BYD said it had cut ties with the construction firm involved and remained committed to a “full compliance with Brazilian legislation”.<\/p>\n<\/div>\n<\/div>\n
![\"BYD](\"https:\/\/ichef.bbci.co.uk\/ace\/standard\/240\/cpsprodpb\/b366\/live\/e61b9ea0-c8aa-11ef-acf5-f3701e2ee0fc.jpg.webp)
<\/picture><\/span>Getty Images<\/span><\/div>\n<\/figure>\n<\/div>\n