Tesla Model Y has lost the title of the world's best-selling car. Where lies the problem with Tesla?

Looking at the new energy vehicle market, everyone will find that Tesla is an absolute king. There was even a saying that there are only two types of new energy vehicles in the world: Tesla and others. However, recently, news came that the Tesla Model Y lost its title as the world's best - selling vehicle. Facing this situation, one can't help but wonder what exactly went wrong with Tesla?

01 Did the Tesla Model Y Lose Its Title as the World's Best - Selling Vehicle?

According to a report from Phoenix Tech and the electric vehicle website Electrek, data from market research firm JATO Dynamics shows that in 2024, the Toyota RAV4 defeated the Tesla Model Y by a margin of 0.16% to become the world's best - selling vehicle.

According to new data compiled by Felipe Munoz, an analyst at JATO Dynamics, the damage Elon Musk has caused to the Tesla brand was enough to make the Model Y lose its throne as the world's best - selling vehicle, although the gap was very small.

The data shows that the Toyota RAV4 surpassed the Tesla Model Y by a narrow margin of less than 3,000 units to become the new world's best - selling vehicle. The global sales of the RAV4 in 2024 were approximately 1.187 million units, a year - on - year increase of 11%; while the global sales of the Tesla Model Y were approximately 1.185 million units, a year - on - year decrease of 3%. This is an amazing achievement for Toyota, as 2024 was the last full sales year for the current model. Although the redesigned model was launched in early 2025, the Model Y still performed quite steadily in 2024.

Since the first quarter of 2023, the Tesla Model Y has consistently held the throne of the "world's best - selling vehicle". It is the first electric vehicle in history to top the global sales list. For an automaker that didn't exist twenty years ago, this is an amazing achievement. The popularity of the Model Y actually validates Musk's earlier prediction. When the Model Y was launched, he said that this vehicle had the potential to become the world's best - selling vehicle. Different from many of Musk's unfulfilled predictions, he was right this time.

02 What Exactly Went Wrong with Tesla?

Currently, although the topic of Tesla losing its best - selling status has attracted much attention, it actually seems quite normal when you think about it carefully. How should we view this matter?

First of all, any product is hard to escape the law of the product life cycle. Tesla's current mainstream models have generally been on the market for more than two years, and the Model Y is no exception. At this stage, the novelty of the product is gradually fading, and consumers' initial amazement at its design and performance has turned into normal perception. The automotive market is a battlefield where consumers always favor the new and discard the old. When competitors continuously introduce new and innovative products, consumers' attention is easily attracted to more innovative and differentiated products. For example, in the era of traditional fuel - powered vehicles, the sales of a classic model would gradually be divided up by emerging models over time. From the perspective of the product life cycle, it is a normal phenomenon for the Tesla Model Y to enter a stable or even declining period after its initial market explosion.

Secondly, in recent years, the new energy vehicle market has shown an explosive growth trend. In particular, Chinese brands such as BYD, Li Auto, Wenjie, and XPeng have rapidly emerged as strong competitors to Tesla. These brands have not only made significant progress in battery technology and autonomous driving assistance systems but also have an advantage in price compared to Tesla. For example, BYD has won the favor of a large number of consumers in the Chinese market and even globally with its blade battery technology and rich product line; while Li Auto has met the range requirements of some users with its extended - range electric vehicle solutions. These diverse and cost - effective options have greatly attracted the target customer group that originally belonged to Tesla, thus diverting Tesla's market share.

Thirdly, as the CEO of Tesla, Elon Musk's personal image and words and deeds have a profound impact on the Tesla brand. In recent years, Musk's involvement in politics has had an adverse impact on Tesla's market sales. In addition, some of his remarks on social media have also sparked controversy, leading some consumers to have an aversion to him and the Tesla brand. In major markets such as Europe, consumers pay more attention to a company's social responsibility, environmental protection concepts, and the image of corporate leaders. Some of Musk's political stances and actions conflict with the values of some European consumers, causing consumers who originally liked Musk and Tesla to gradually abandon their affection. When consumers purchase products, they not only focus on the performance and quality of the product itself but also consider the values conveyed by the brand and the image of the corporate leader. When Musk's image is damaged, the image of the Tesla brand in consumers' minds will inevitably be affected, which in turn affects product sales.

Fourthly, for Tesla, losing the title of the best - selling vehicle is indeed a warning, but it is also an opportunity to re - examine itself and seek greater development.

On the one hand, in terms of products, Tesla needs to accelerate the R & D and launch of more competitive blockbuster models. This should not only be reflected in technological innovation, such as further improving the driving range and optimizing the intelligent driving system, but also in bold innovation in product design to meet consumers' increasingly diverse and personalized needs.

For example, it can learn from the iteration model of the mobile phone industry, regularly launch new models with significant changes in appearance and interior, and strengthen the integration and innovation with other industries to create a unique in - car ecological experience. On the other hand, in terms of brand image building, Tesla needs to pay more attention to communication and interaction with consumers and the general public, and actively convey positive brand values. As the soul figure of the brand, Musk needs to pay attention to his words and deeds to avoid negative impacts on the brand caused by his personal behavior. Only in this way can Tesla regain its advantage in the market and return to its previous dominant position.

This article is from the WeChat official account "Jianghan Vision Observation". The author is Jianghan Vision Observation. It is published by 36Kr with authorization.