Tesla Inc. achieved a record-breaking milestone in China in 2024, delivering over 657,000 vehicles, an 8.8% year-over-year increase. This growth highlights China’s significance in Tesla’s global strategy, contributing 36.7% of the company’s total sales. Notably, Tesla’s December sales in China surged 12.8%, setting a new monthly record of 83,000 units. However, amidst this regional success, Tesla’s global vehicle deliveries declined by 1.1% to 1.79 million units, marking the first global sales dip in the company’s history.
The Chinese market remains vital for Tesla amid rising competition from domestic EV makers like BYD. To stay competitive, Tesla has introduced incentives like discounts and zero-interest financing. While exports from its Shanghai factory declined due to reduced European subsidies and export challenges, Tesla’s adaptability in China has helped maintain its leadership.
Despite global challenges, Tesla’s performance in China underscores its pivotal role in the global EV market. China accounted for 70% of global EV and hybrid sales in 2024, driving overall market growth. As Tesla navigates an increasingly competitive industry and regional pressures, its strategic focus on China remains a cornerstone of its continued influence in the electric vehicle sector.
