Tesla Inc, the electric vehicle leader, reported record overall deliveries in the third quarter, but saw lower figures for the months in the fourth quarter. A new report for wholesale vehicles in China for the month of December offers a mixed bag for investors.
Key Points
- Tesla’s wholesale figure grew in December, with 97,171 vehicles sold
- The figure marks a 3.6% year-over-year increase and a 12.1% increase from November
- The December figure is the second-best month for China ever, trailing only the 100,291 vehicles sold in November 2022
- Total wholesale sales for the full year were 851,732 units, down 7.1% from the previous year
- Domestic sales in China were 531,855 units, marking a decline in sales for the Chinese market
Tesla’s Rebound In December
After a slow November, Tesla’s wholesale figure grew in December, with 97,171 vehicles sold. This marks a 3.6% year-over-year increase and a 12.1% increase from November. The strong December could indicate a rebound for demand in China or nearby regions, with a second straight month of year-over-year gains in the country.
Tesla’s 2025 Decline
While the December figure is a positive sign, it’s not enough to offset the decline in sales for the full year. Total wholesale sales were 851,732 units, down 7.1% from the previous year. Domestic sales in China were 531,855 units, marking a decline in sales for the Chinese market. This decline is attributed to the changeover at the Shanghai Gigafactory for the new Model Y and increased competition in the region.
What’s Next for Tesla
The year 2025 will be remembered as one of ups and downs for Tesla, with weakened demand in some regions due to competition and opinions on CEO Elon Musk. While vehicle deliveries remain an important part of the company’s storyline, investors are focusing on growth items like robotaxis and robotics. As Tesla looks to the future, it will be important to watch how the company navigates the changing electric vehicle landscape and balances its focus on innovation with its need to drive sales and revenue.