Tesla reported record-breaking sales in China for 2024, marking an 8.8% increase to over 657,000 vehicles sold in its second-largest market. This performance stands in contrast to the company’s first-ever global delivery decline, which saw a 1.1% drop from the previous year.
China’s demand for Tesla vehicles surged, with December sales climbing 12.8% month-over-month to 83,000 units, a monthly record according to Tesla China. For the full year, 36.7% of Tesla’s global deliveries were in China, underscoring the country’s significance to the company’s operations.
Globally, Tesla delivered 1.79 million vehicles in 2024, narrowly maintaining its lead over China’s BYD, which recorded a 12.1% increase to 1.76 million electric vehicle (EV) sales. CEO Elon Musk’s prediction of slight global growth fell short, with reduced subsidies in Europe, a shift toward hybrids in the US, and heightened competition, particularly from BYD, contributing to the decline.
Tesla’s challenges were not limited to demand. The company reduced its global workforce in response to a competitive landscape and lower-than-expected demand. In China, Tesla trimmed its sales team even as it extended promotional offers, such as a 10,000 yuan discount on loans for the Model Y and zero-interest financing for select Model 3 and Model Y models until month-end. These measures aim to counter the ongoing EV price war, now entering its third year.
Meanwhile, BYD continues to grow its footprint, with overall sales climbing 41% to over 4.25 million passenger vehicles in 2024. While its EV and hybrid sales thrive, its overseas shipments grew 71.9% to 417,204 units, accounting for nearly 10% of global sales. Brazil emerged as a key export market for BYD, although the company faces local investigations into labor practices at a factory construction site.
The competitive landscape reflects a dynamic and challenging market for EV makers. Tesla’s strong performance in China offers a silver lining as it navigates global headwinds.
