In a recent development highlighting Tesla Inc.'s (NASDAQ: TSLA) performance in the Chinese electric vehicle (EV) market, the company reached a new milestone with December sales totaling 93,843 vehicles. This achievement represents a 13.2% growth compared to December 2024, as well as a substantial 31.2% increase quarter-over-quarter. Data illustrated a consistent upward trajectory since October 2020, underscoring December as Tesla's most successful single month in China to date.
Despite this notable performance in the Chinese market, Tesla's overall fourth-quarter delivery figures tell a different story. The automaker reported delivering 418,227 units globally during Q4, marking a 16% decline year-over-year. This figure fell short of the consensus among analysts, who had forecast deliveries around 445,000 units. Observers noted that Tesla's early release of these delivery numbers deviated from its typical pattern, though the data aligned with forecasts by some investors such as Gene Munster.
While Tesla faces challenges in global deliveries, its Chinese competitor BYD Co. Ltd. (OTC: BYDDY, OTC: BYDDF) continues to expand its footprint and has overtaken Tesla to become the largest EV manufacturer worldwide. BYD's advancement is attributed to strong sales growth in foreign markets, particularly Europe, contributing to its ascendance. However, its growth prospects are tempered by declines in domestic sales within China. Interestingly, the export activities of Chinese automakers have surged, with overseas shipments increasing by 87%.
From a market analysis perspective, Tesla exhibits solid momentum and satisfactory quality metrics but is assessed as having weaker value metrics. The stock benefits from favorable pricing trends in both the medium and long term. In pre-market trading, Tesla shares saw a modest gain of 0.24%, trading around $436.84 per share, reflecting investor sentiment following the mixed Q4 delivery report.
Overall, Tesla's record-breaking December sales in China suggest strong demand within that market, even as global delivery volumes face headwinds. The contrast between monthly sales records and a quarterly decline highlights the complexity of Tesla's operational landscape. Meanwhile, BYD's expanded global presence combined with uneven domestic sales underscores shifting dynamics within the competitive EV sector.