Tesla's annual vehicle deliveries fell for the first time in over a decade, with 1.79 million vehicles delivered in 2024, slightly less than the 1.81 million in 2023. This decline, the first since 2011, was due to increased competition from Chinese EV manufacturers like BYD. Despite the annual decline, Tesla remains the world's largest EV maker, though BYD reported selling 1.76 million pure EVs and a record c.4.3 million EVs and hybrids overall in 2024. Tesla's quarterly deliveries were 495,570 vehicles, a 2.3% increase from Q4 23 but below market expectations of over 500,000. Investors had expected a strong Q4 due to cost cuts and discounts to boost consumer demand. In October, Tesla reported higher-than-expected quarterly profits and forecasted slight growth in deliveries for 2024, with Musk predicting a 20-30% increase in vehicle sales for 2025. The company faces challenges from cheaper Chinese rivals and concerns about slowing EV sales growth. Additionally, Musk's political activism, including significant support for Donald Trump's election campaign and involvement in a new Department of Government Efficiency, has influenced Tesla's market position. While Tesla shares surged post-election, the company faces potential political uncertainties, such as missing out on California's EV tax rebates. Musk has shifted Tesla's focus towards autonomous driving, AI, and robotics, aiming to make these technologies the company's main revenue sources. Tesla plans to produce a self-driving Cybercab by 2027, priced at approximately $25,000 after incentives. However, the anticipated affordable $25,000 Model 2 is not in development, with a new model priced below $30,000 expected in the first half of the year.
BYD announced that it has achieved record sales, in 2024, surpassing domestic competitors with 4.27 million units sold. This impressive figure includes both hybrids and fully electric vehicles, driven by strong domestic demand and successful government trade-in programs. BYD's sales performance highlights its dominant position in the Chinese EV market, where it continues to outpace rivals. The company's success is attributed to its diverse product lineup, which appeals to a broad range of consumers, and its ability to leverage government incentives aimed at promoting EV adoption. The record sales come amid a broader push for electrification in the automotive industry, with China leading the charge. The Chinese government has implemented various policies to support the transition to electric mobility, including subsidies, tax incentives, and infrastructure development. These measures have created a favourable environment for companies such as BYD to thrive. BYD's achievement in 2024 underscores the growing importance of the Chinese market in the global EV landscape. As the world's largest automotive market, China's shift towards electrification is expected to have significant implications for the industry worldwide. The company is well-positioned to capitalise on the increasing demand for EVs, both domestically and internationally.
The US Treasury has announced it has relaxed the rules for hydrogen producers seeking tax credits under the Inflation Reduction Act, specifically Section 45V, which offers up to $3/kg for clean hydrogen production. Initially, producers were required to match their hydrogen plant operations with renewable electricity production within the same hour starting in 2028. This requirement has now been postponed to 2030, thus providing more flexibility for producers. Additionally, the Treasury has opened a pathway for nuclear energy to be used in hydrogen production, which could further support the clean hydrogen industry. These changes aim to reduce the cost gap between clean hydrogen and traditional fossil fuels, making clean hydrogen more competitive. The relaxation of these rules is seen as a significant step towards accelerating the clean energy transition. Overall, the updated 45V rules provide additional flexibility for hydrogen producers and open new opportunities for integrating nuclear energy into clean hydrogen production. This is expected to help the US lead in clean manufacturing and support the broader goal of reducing carbon emissions.
From January to November 2024, global EV battery usage reached 785.6 GWh, indicating a 26.4% increase from the same period in 2023. Impressively, CATL maintained its leading position with a 36.8% market share, installing 289.3 GWh of batteries. BYD followed with a 17.1% share, up from 16.8% in the previous month, installing 134.4 GWh. LG Energy Solution ranked 3rd with an 11.6% share, despite a slight decline from the previous year. Other notable players included China's CALB (4.6%), South Korea's SK On (4.5%), and Japan's Panasonic (4.0%). The increase in battery usage reflects the growing demand for EVs globally, driven by advancements in battery technology and supportive government policies. CATL's dominance is attributed to its partnerships with major OEMs such as Tesla, BMW, and Volkswagen. BYD's growth is fuelled by its focus on both battery electric vehicles and plug-in hybrid electric vehicles, as well as its expansion into Asian and European markets. This data underscores the competitive landscape of the EV battery market, with Chinese companies continuing to lead the charge.
South Africa has introduced a 150% tax deduction on investments in electric and hydrogen-powered vehicle production, aiming to attract Chinese EV manufacturers. This initiative is part of a broader strategy to develop a $27bn EV industry in the country. The tax break is expected to make South Africa a more attractive destination for Chinese automakers looking to expand their global footprint. By offering significant financial incentives, the South African government hopes to boost local production, create jobs, and stimulate economic growth. This move comes as the global automotive industry shifts towards electrification, with countries worldwide implementing policies to support the transition to cleaner energy. South Africa's efforts to attract Chinese EV manufacturers highlight the growing importance of international collaboration in the development of sustainable transportation solutions.
Oman has announced it is establishing a Net Zero Centre to oversee the implementation of projects and provide technical support as part of its goal to achieve net zero emissions by 2050. The centre will focus on adopting and transferring international best practices and technologies, supporting scientific research, and developing national capabilities. With its abundant solar and wind resources, Oman targets hydrogen, ammonia, and low-carbon development and exports. Over 50,000 square kilometres have been allocated for green hydrogen production, with 8 projects awarded so far, expected to produce 1,380 ktpa of green hydrogen. The centre will also manage the registration and approval of carbon certificate trading, ensuring alignment with international carbon credit frameworks. The initiative aims to ensure energy security, diversify the local economy, decarbonise the country, and create a competitive green hydrogen sector. Plans include developing integrated hydrogen infrastructure, renewable energy product manufacturing, steel plants, and export terminals. This move underscores Oman's commitment to sustainable development and its strategic role in the global green hydrogen market.
Tata Motors has announced it has secured a contract to supply an additional 148 electric buses to the Bengaluru Metropolitan Transport Corporation (BMTC). This order is part of BMTC's ongoing efforts to modernise its fleet and promote sustainable urban transportation. The new buses will be equipped with advanced technology to ensure efficient and eco-friendly operations. This initiative aligns with India's broader push towards electrification in public transport, aiming to reduce carbon emissions and improve air quality in urban areas. Tata Motors has been a key player in this transition, having previously supplied numerous electric buses to various cities across India. This move also supports the government's vision of achieving a significant reduction in vehicular pollution and promoting green mobility solutions.
Chinese EV manufacturers are extending buying incentives as the price war in the EV market enters its 3rd year. Companies like BYD and Nio are offering substantial discounts and subsidies to attract customers and maintain their market share. These incentives include price cuts, extended warranties, and free charging services. The ongoing price competition is driven by the need to boost sales amid slowing demand and increased production capacity. This aggressive pricing strategy has put pressure on profit margins but is seen as necessary to stay competitive in the rapidly growing EV market. The Chinese government has also played a role by providing subsidies and tax incentives to support the EV industry. However, there are concerns that the prolonged price war could lead to financial strain for some manufacturers, potentially resulting in market consolidation. Overall, the extended buying incentives reflect the intense competition in the Chinese EV market as companies strive to attract customers and expand their market presence.
Geely Auto has formed a strategic partnership with 5 leading Indonesian dealers to expand its presence in Southeast Asia. This collaboration marks Geely's ambitious entry into one of the region's largest automotive markets. The partnership aims to promote the adoption of EVs in Indonesia, aligning with the country's goals for sustainable transportation. Geely's move is part of its broader strategy to strengthen its global footprint and support the transition to cleaner energy. By leveraging local expertise and market knowledge, Geely plans to introduce a range of EV models tailored to meet the needs of Indonesian consumers.
Deals
Flint, a Singaporean-based deep-tech startup, has raised $2m in a Seed funding round to advance its cellulose-based paper battery technology. The funding round was led by a consortium of international angel investors and the AI-driven VC firm Hatcher+1. Flint aims to accelerate the commercialisation of its sustainable energy storage solutions, focusing on pilot production, IP development, and expansion. The company's paper batteries are designed to be environmentally friendly and cost-effective, offering a sustainable alternative to traditional lithium-ion batteries. This funding will support Flint's efforts to bring its technology to market, contributing to the broader goal of reducing the environmental impact of energy storage.