American electric vehicle giant Tesla has announced that its sales increased 8.8% to a record high of over 657,000 cars in 2024. This is a strong performance in a competitive market during a year in which its annual global deliveries fell for the first time.
According to Tesla China, sales of its vehicles in the biggest car market in the world climbed 12% in December 2024 compared to the same month in 2023, reaching a record high of 83,000 units.
China is Tesla’s second-largest market, and according to sales data, 36.7% of its vehicles were delivered to Chinese consumers in 2024.
Elon Musk, the CEO, had earlier predicted a slight increase, but worldwide deliveries fell 11%. Sales were hampered by tighter international competition, particularly from China’s BYD, a shift in the United States toward less expensive hybrid cars, and reduced European subsidies.
With 170 million cars sold worldwide in the full year, Tesla was still just ahead of BYD, whose electric vehicle sales increased 12.1% to 170 million worldwide.
In 2023, the American EV giant reduced the size of its China sales team and its global workforce due to weak demand and increased competition from Chinese manufacturers.
Tesla has extended a 10,000 yuan (USD 1,369.99) discount on outstanding loans for its best-selling Model Y, as well as zero-interest financing of up to five years for certain Model 3 and Model Y cars, as the third year of an EV price war in China begins.
BYD, which has spearheaded a cost-cutting competition with its Ocean and Dynasty series of plug-in hybrids and electric vehicles, exceeded its sales goal in 2023, with passenger vehicle sales rising 41% to more than 425 million units.
Due to a 17% additional tariff, the lowest the European Union has imposed on Chinese electric vehicles from China, the Chinese EV champion’s overseas shipments increased 71% to 417,204 units, or 9% of its global sales, falling short of its export goal of 450,000 for 2024.