Tesla Shares Record 8.8% Sales Boost in China Despite Tough Market

Key Takeaways

• Tesla has hit record 2024 sales in China.
• At the same time, the U.S. electric vehicle manufacturer experienced a slight decrease in global sales, highlighting China’s supportive policies to the market.
• The EU and the U.S. have seen a much slower adoption of electric vehicles. 

Tesla announced  on Friday that its China sales reached a record high of over 657,000 cars in 2024, marking an increase of 8.8%.

The growth comes despite a slight slide in global deliveries for the U.S. electric vehicle (EV) manufacturer, missing CEO Elon Musk’s growth prediction.

The record increase in China, despite sliding global sales, is indicative of China’s openness to the EV market, while the U.S. and Europe struggle with widespread adoption and reduced subsidies.

Tesla Celebrates China Sales

Tesla’s sales performance in 2024 highlighted a significant regional disparity for the EV maker.

Over the past twelve months, Tesla delivered over 657,000 vehicles in the world’s largest auto market—an 8.8% increase from the previous year.

December alone saw sales of 83,000 units, marking a 12.8% rise from November.

Deliveries to China comprised 36.7% of Tesla’s total sales, making China its second-largest market, following closely behind the U.S.

Tough Global EV Market

Despite this success in China, Tesla’s global deliveries experienced a slight decline, marking its first annual sales drop since 2011.

Musk’s EV company reported 1.79 million deliveries worldwide in 2024, a 1.1% decrease compared to 2023.

Several factors contributed to this global downturn.

In Europe, the reduction of subsidies for electric vehicles impacted sales. In the U.S., there was a consumer shift towards more affordable hybrid vehicles.

In addition, Tesla has been fighting some fierce new competition, especially from Chinese manufacturer BYD, the South China Morning Post reported .

BYD was the world’s biggest seller of EVs in the fourth quarter of 2024, beating Tesla in deliveries by over 20%.

Potential U.S. EV Rollback

China’s supportive policies towards the EV market have been advantageous for Tesla.

Focusing on EV infrastructure and favorable government policies have allowed the region’s battery-powered vehicle market to flourish.

However, the environment for EVs in the West is quite a different story.

In December 2024, Reuters reported  that President-elect Donald Trump’s transition team had recommended redirecting money for EV charging stations and subsidies.

This potential rollback coincides with Trump’s historically anti-green policies, which could push further against Tesla’s hopes of getting everyone to drive EVs.

The transition team has also reportedly called for a rollback on the Biden administration’s $7,500 consumer tax credit for EV purchases.

A lack of subsidies for cheaper EV sales could potentially heavily impact Tesla and the wider U.S. EV sector, which has already seen a slow adoption of battery-powered vehicles.