Tesla is under pressure to achieve its 2024 sales target of "slight growth" as the year comes to a close. The company is relying on aggressive promotional strategies and a strong fourth quarter to exceed last year's delivery figures of 1.81 million vehicles.
by Wei Yongmeng
Tesla is targeting its largest market outside the U.S. with limited-time discounts. On November 25, Tesla China announced a 10,000-yuan discount on all Model Y variants for customers completing delivery by December 31. Buyers can also choose a five-year 0% interest financing plan.
The promotion has already generated significant interest. In a Tesla store in Beijing, sales staff reported that daily sales have doubled since the discount was introduced, from 3–4 cars to 7–8 cars. With deliveries requiring one to three weeks, the first two weeks of December are expected to see peak transactions.
This marks Tesla’s sixth price adjustment this year, surpassing the four cuts in 2023. While these discounts boost short-term sales, they underscore Tesla’s challenge in meeting its annual growth target. In 2023, Tesla delivered 1.81 million vehicles globally. With 1.33 million deliveries in the first three quarters of 2024, the company must deliver over 481,000 vehicles in Q4 to exceed last year’s performance—a daunting task given lower-than-expected sales growth in the first half of the year.
Tesla has launched similar promotions worldwide. In the U.S., buyers taking delivery before December 31 receive three months of free Supercharging and access to Full Self-Driving (FSD) capabilities. European customers purchasing Model Y by year-end get a year of free Supercharging.
The Model Y remains Tesla’s best-selling vehicle, with global sales surpassing 844,000 units in the first three quarters of 2024. In China, Model Y domestic sales exceeded 36,000 units in October, with cumulative sales for the year surpassing 373,000 units.
However, Tesla’s market share in China has dropped from 16 percent in 2021 to 7.8 percent in 2024, as domestic automakers launch competitive electric SUVs. Without FSD availability in China, Tesla's competitive edge is narrowing.
Market rumors suggest Tesla may launch a redesigned Model Y in 2025, with production reportedly underway. This has fueled speculation that the current price cuts aim to clear inventory. Tesla has denied the rumors, though store staff acknowledged hearing them, adding that a new model would likely carry a significantly higher price.
Tesla's ability to meet its 2024 sales goals hinges on its performance in the remaining weeks and its ability to navigate increasing competition in key markets like China and beyond.
