Tesla posted record China Sales Last Year, But 2025 Is Going To Be Tough As Competition Heats Up

Austin: Last year, sales of Tesla's electric vehicles in China reached a record high. According to observers, maintaining that level of performance in 2025 may be challenging as competition from domestic players heats up.

In 2024, the U.S. electric vehicle manufacturer's yearly sales in China increased by 8.8 per cent to a record-breaking 657,000 vehicles. According to Tesla China, its sales increased 12.8 per cent from the previous month to 83,000 vehicles in December alone.

But according to Bill Russo, founder and CEO of Automobility, Tesla has been losing market share to Chinese new-energy vehicle companies, which has decreased from 7.8 percent in 2023 to 6 percent in the January–November period of last year. Russo thinks “Tesla is struggling to keep pace and has a limited and ageing product portfolio.”

Tu Le Was Less Confident About The Company To Maintain Its Momentum in 2025

Tu Le, the founder and managing director of Sino Auto Insights, stated that while price reductions and brand resilience have helped Tesla's sales thus far, he was less confident that the company could maintain its momentum in 2025 due to a lack of new products and heightened local competition, particularly from Chinese businesses.

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Late in December, Tesla cut the price of its top-selling Model Y in China by 10,000 yuan and offered auto buyers a five-year loan plan with no interest until the end of January.

Tesla Slashed Its Price By 14000 Yuan

Tesla's website states that its best-selling Model Y now starts at 239,900 yuan following the discount, while the Model 3 sedan starts at 231,900 yuan. In April, Tesla slashed its prices by 14,000 yuan.

Even yet, it was a substantial premium over a wide range of less expensive models produced by indigenous Chinese automakers. BYD, the market leader with about a 34 per cent market share, charges 136,800 yuan for one of its best-selling models, the Seagull, and 96,800 yuan for the more reasonably priced Yuan Plus model.