Tesla (TSLA) witnessed a record-breaking sales performance in China, delivering nearly 83,000 electric vehicles (EVs) in December. This represents a 12.8% rise compared to November deliveries. In total, Tesla delivered 657,000 vehicles in China for the full year of 2024, setting a new record and reflecting an 8.8% year-over-year growth.
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This impressive sales growth in this region solidifies the company’s position in the world’s largest auto market. Investors should note that China remains a crucial market for Tesla, accounting for over 36% of its global sales.
Despite the strong results in China, Tesla’s overall global deliveries in 2024 saw a slight decline. For the full year, Tesla delivered 1.79 million vehicles worldwide, down 1.07% from the previous year. This fall can be attributed to reduced European subsidies, increased competition from Chinese EV manufacturers, and a shift towards lower-priced hybrid vehicles in the U.S. market.
Tesla’s Competition with BYD Gets Intense
Tesla was able to surpass its key Chinese rival, BYD (BYDDF), in terms of global sales. TSLA delivered 1.79 million vehicles in 2024 compared to BYD’s 1.76 million. However, it is worth highlighting that BYD saw significant growth, with passenger vehicle sales surging 41% to over 4.25 million units.
To boost sales, Tesla is offering incentives in China. The company has extended its RMB 10,000 discount on outstanding loans for Model Y vehicles until the end of this month. At the same time, BYD is offering discounts of up to 11.5% on two of its models, which include one hybrid and one EV.
With aggressive pricing strategies and technological advancements, the Chinese EV market remains highly competitive as both domestic and international players seek to boost market share.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA has a Hold consensus rating based on 13 Buys, 11 Holds, and nine Sells assigned in the last three months. At $292.03, the average Tesla price target implies a 23% downside potential. Shares of the company have gained 57.6% over the past three months.
