Tesla experienced a significant shift in the global electric vehicle market in 2024, with its first annual sales decline in over a decade. While sales fell in most major markets, China was the only region where Tesla saw growth. However, Chinese EV buyers were increasingly opting for locally made models over foreign brands.
According to Reuters, Tesla delivered 657,000 vehicles in China in 2024, an 8.8% increase from the previous year. With China accounting for 36.7% of its global deliveries, it became Tesla’s second-largest market after the United States. In contrast, sales in the U.S. declined compared to 2023, indicating a potential shift in Tesla’s main market.
China solidified its position as the world’s largest EV market in 2024, with domestic manufacturers like BYD making significant strides. BYD delivered 4.25 million passenger vehicles, narrowing the gap with Tesla, which delivered 1.8 million EVs. Increased competition from local brands and lower subsidies in Europe contributed to Tesla’s sales decline in these regions.
In the U.S., General Motors emerged as the country’s second-best-selling EV manufacturer in 2024, selling 114,000 EVs. Tesla’s hopes for higher sales were pinned on the Cybertruck, but the electric pickup truck failed to meet expectations as the year progressed. Despite initial interest, Cybertruck sales slowed down, indicating a potential mismatch with consumer preferences.
Analysts predict that if the current trend continues, China could surpass the U.S. as Tesla’s primary market. A shift towards affordable EV models could potentially reverse this trend, with rumors of a sub-$30,000 Tesla model in the pipeline. The lack of affordable EV options in the U.S. contrasts with China, where models like the BYD Dolphin are available for less than $14,000.
Chinese automakers have expressed interest in entering the U.S. market, but a 100% import tariff has delayed their plans. Without this barrier, Chinese manufacturers could further challenge Tesla’s market share, which fell to 48% in 2024. The dynamic landscape of the global EV market suggests that Tesla will need to adapt to changing consumer preferences and increasing competition to maintain its position as a leader in the industry.