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.

China's BYD, however, looks set to close the gap after reporting 1.76 million EV sales in 2024. The Shenzhen-based firm's total vehicle sales jumped more than 41% in 2024, year-on-year, to more than 4.2 million. The surge was powered mainly by sales of its hybrid cars.

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,