Tesla faces fresh threats as Chinese automakers double down on domestic market in the face of hefty export tariffs in the U.S. and European Union.

Tesla just experienced its first annual sales decline in over a decade, signaling a significant shift on the global EV scene in 2024. The only major market where it experienced growth last year was China, even though the trend among Chinese EV buyers was to move away from foreign brands and buy locally made models instead.

The EV giant sold 1.76 million electric cars in 2024, per figures released on Wednesday, putting it within touching distance of beating Tesla.

Tesla, the US electric vehicle giant, celebrated record sales in China in 2024, but analysts warn that sustaining this performance in 2025 could prove challenging as competition with domestic players intensifies.

Tesla reported record-breaking sales in China for 2024, marking an 8.8% increase to over 657,000 vehicles sold in its second-largest market. This performance stands in contrast to the company’s first-ever global delivery decline,