Tesla’s China Deliveries Hit 97,171 in December as Global Sales Slip

Tesla’s China production arm delivered 97,171 China‑made electric vehicles in December, a monthly tally that market participants use to gauge near‑term consumer demand, model mix and factory output. The December figure, disclosed in the company’s production and delivery reporting, offers a snapshot of activity at China facilities that have been central to Tesla’s global supply chain and price competition strategy.

For the full year, Tesla reported 1.64 million vehicle deliveries in 2025, a decline of 9% from a year earlier. That drop coincided with a larger reshuffling of the EV market: Chinese automaker BYD sold 2.26 million vehicles in the year and overtook Tesla as the world’s bestselling electric vehicle maker. Analysts say the divergence of these totals highlights two parallel trends, a still‑significant output from China factories and an erosion of Tesla’s global market share amid intensifying competition.

Market observers point to several proximate causes for the slowdown in Tesla sales. Consumer sentiment in the United States has been affected by political controversy surrounding the company’s chief executive, while the expiry of U.S. federal tax incentives for certain EV buyers removed a key support for demand. Overseas, incumbents and new entrants have accelerated product development and pricing that have narrowed Tesla’s advantage on cost and technology in key markets.

The December China deliveries represent roughly 6% of Tesla’s companywide deliveries in 2025, underscoring that China remained an important but not dominant source of volume in the year. Month‑by‑month figures such as the December number are closely watched because they can reveal short‑term shifts in buying patterns, inventory flows and factory utilization that quarterly reports can obscure.

Broader industry and market cues reinforced the delivery news. At the recent CES technology show, automakers emphasized advances in self‑driving systems and artificial intelligence even as some firms signaled a strategic pullback from aggressive EV expansion plans. Supply‑chain developments included an auto‑parts supplier winning a $1.1 billion order from a North American automaker, a reminder that OEM demand has real‑time implications for global suppliers. Commodity markets reflected these dynamics: Japanese rubber futures rose for a ninth session, a move linked to strength in global car sales.

Policy dynamics will play a central role in the near term. The expiration of U.S. tax breaks reduces affordability for some buyers and could depress uptake unless replaced by new incentives or targeted subsidies. At the same time, pricing competition and fast product cycles in China suggest manufacturers that can combine low costs, localized models and advanced driver assistance systems will capture the next wave of volume growth.

Longer term, Tesla faces a market maturing into multi‑polar leadership, where scale, vertical integration and regional policy alignment matter as much as software and branding. The December China deliveries and the full‑year totals together suggest a company navigating uneven demand, intensifying rivalry and evolving policy incentives as the global EV market enters its next phase of competition.