Tesla Inc. achieved a new milestone in China, reporting record sales of over 657,000 vehicles in 2024, an 8.8% year-over-year increase. This surge came despite the automaker experiencing its first annual global delivery decline.
Tesla’s December performance in China was particularly strong, with 83,000 units sold—a 12.8% jump compared to the previous month, according to Tesla China. The country now represents 36.7% of Tesla’s total deliveries, underscoring its significance as Tesla’s second-largest market.
However, Tesla’s global deliveries fell 1.1% to 1.79 million vehicles, missing CEO Elon Musk’s prediction of slight growth. The decline was attributed to reduced subsidies in Europe, a shift toward hybrids in the U.S., and fierce competition from Chinese EV manufacturer BYD.
Competition Heats Up as Tesla Faces Challenges
BYD, Tesla’s primary rival, reported EV sales growth of 12.1% in 2024, delivering 1.76 million pure EVs globally. While Tesla narrowly maintained its lead, BYD’s aggressive expansion strategy and cost-effective offerings, such as its Dynasty and Ocean series, have heightened competition.
Tesla also scaled back its workforce globally last year in response to softening demand and rising competition from Chinese automakers. In China, Tesla introduced discounts and financing incentives to maintain its competitive edge. For its popular Model Y, Tesla extended a 10,000-yuan ($1,370) discount on loans and offered zero-interest financing for up to five years on select models.
BYD Expands Globally Amid Challenges
BYD exceeded expectations domestically, with passenger vehicle sales up 41% to over 4.25 million units. The company also increased overseas shipments by 71.9% to 417,204 units. However, it fell short of its export target of 450,000 vehicles due to a 17% EU tariff on Chinese EV imports.
In Brazil, BYD faces scrutiny over labor practices at a factory construction site, where Brazilian authorities are investigating conditions for Chinese workers. Despite this, Brazil remains a strong export market, accounting for nearly 20% of BYD’s overseas sales.
Tesla’s Strategic Moves for 2025
As the global EV market evolves, Tesla faces increasing pressure to maintain its lead. With intensified competition, particularly in China, Tesla’s focus on pricing strategies and new product launches will be critical in the coming year. Meanwhile, BYD’s rapid growth signals a shifting landscape in the global EV industry, where affordability and innovation are key drivers of success.
