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 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, 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.

U.S. electric vehicle maker Tesla said on Friday its China sales rose 8.8% to a record high of more than 657,000 cars in 2024, a strong performance in a competitive market in a year when its annual global deliveries fell for the first time.

Chinese car maker BYD saw sales jump at the end of last year, leaving it closer to claiming the title of the world's best-selling electric vehicle (EV) maker of 2024. The company says it sold 207,734 EVs in December,

Tesla recorded its first annual sales decline since becoming a publicly traded company, with a 1% drop in sales in 2024 compared to the previous year.