China becomes Tesla’s top global market, a blow to Elon Musk

Due to the decline in Tesla sales in the United States, China became in 2024 the world’s leading market for the American manufacturer.

This is a bitter irony for the controversial boss that is Elon Musk, who “rides the wave” of Donald Trump. “Make America Great Again” has never been such an appropriate slogan for Tesla and its South African leader. Because if Tesla did not experience a decline in 2024, it is solely because China offset the drop in US sales (-5% or 34,475 units) and Europe (-10% or 38,477 units). That’s a combined decrease of 72,952 vehicles, compensated by an 8% increase (or 48,597 units). Ultimately, Tesla saw its sales decrease by 1% globally in 2024 after years of persistent growth since its inception. A strong signal that raises serious concerns.

Thus, the USA likely consumed 623,151 Tesla last year, compared to 657,626 in 2023. In Europe, sales dropped from 365,171 to 326,694 in 2024. As for China, the energy transition dynamics—much more advanced than elsewhere, contrary to skeptics—saw Tesla sales increase from 610,685 to 659,282 units.

A Tarnished Leadership

However, this success is accompanied by a certain dissonance. Elon Musk, often considered a visionary, has a troubling past. In 2021, Tesla was ordered to pay $137 million to a former Black employee for racial discrimination regarding working conditions.

Additionally, his often controversial political stances have heightened social divisions around his persona. Whether through ambiguous statements on social media or questionable political alliances, Musk polarizes. This polarization has led some consumers in the West to turn away, but appears to have no impact—or even a reverse effect—in China.

China: Pragmatism or Opportunism?

Why does China escape this controversy? The answer may lie in the pragmatism of Chinese consumers and Musk’s strategy. Unlike in the West, where consumer choices are often influenced by ethical considerations, the Chinese market primarily values technological innovation and performance. Tesla has cultivated an aspirational brand image associated with modernity and social status. Moreover, Musk adopts a nearly reverent stance towards the Chinese government, repeatedly praising the country’s industrial policies, in stark contrast to his dismissive tone towards Western regulators.

This scenario highlights a biting irony: while Musk faces declining popularity in the United States and Europe, he thrives in a country with a political system entirely opposed to the values he publicly advocates. China, where individual freedoms are limited, provides Tesla with an unexpected economic boon, reinforcing a global position that skeptics might have hoped to shake.

Now, the question remains whether 2025 will be a year of recovery for Tesla… or the beginning of Elon Musk’s exile. An uncontrollable free spirit, already involved in numerous geopolitical disputes (Germany, UK, France), it’s uncertain if Donald Trump will finally disconnect him from his administration. That would mark the end for Musk, with a chain reaction affecting Tesla, SpaceX, and X. That’s somewhat the direction of history…

ALSO READ: Toyota Prius receives all-wheel drive