Tesla has achieved record-breaking sales in China, with 2024 figures climbing 8.8% to over 657,000 units. This remarkable performance stands in stark contrast to the company’s global deliveries, which fell by 1.1%—marking Tesla’s first annual decline.
China now accounts for 36.7% of Tesla’s global sales, solidifying its position as the company’s second-largest market. In December alone, Tesla’s China sales jumped 12.8% from the previous month, hitting 83,000 units, according to Tesla China.
China remains the only major market showing robust growth, as EV demand elsewhere is slowing. Industry data reveals China contributed over 90% of the global increase in EV and hybrid sales during the first 11 months of 2024.
Struggles in Global Markets
While Tesla thrived in China, global challenges hindered its overall performance. Exports from its Shanghai plant plummeted by 24% to 260,000 units, partly due to a European Union tariff of 7.8% imposed on China-made Tesla vehicles.
Tesla’s rivals also gained ground. Chinese automaker BYD reported a 12.1% rise in global EV sales, narrowing the gap with Tesla. BYD’s overseas shipments surged 71.9% but fell short of its export target, as EU tariffs and labor investigations in Brazil added pressure.
Competitive Moves Amid Price Wars
As price competition intensifies in China, Tesla extended discounts on its popular Model Y, offering buyers up to $1,370 in savings and five-year zero-interest financing. BYD, Tesla’s main competitor, countered with aggressive pricing for its Dynasty and Ocean series.
Despite these challenges, Tesla delivered 1.79 million cars globally in 2024, narrowly maintaining its lead over BYD, which sold 1.76 million.
The global EV landscape is evolving rapidly, but for now, China remains Tesla’s lifeline. With a 70% share of global EV and hybrid sales, the world’s largest auto market continues to shape the industry’s future.
Read more on BYD outpaces Tesla with 41% growth, selling 1.76m EVs in 2024
