In August, Tesla, the U.S.-based electric vehicle (EV) giant, set a new sales record for 2024 in China, with its Shanghai Gigafactory seeing a significant rise in deliveries for the second consecutive month. This achievement signals China’s growing allure for foreign investors, especially in the EV sector, as the country accelerates its green transition and economic opening.

Tesla’s sales in China surpassed 63,000 units in August, marking a 37 percent increase compared to the previous month. The brand’s Shanghai Gigafactory saw deliveries reach nearly 87,000 units—a 17 percent rise from the previous month. Tesla’s performance solidifies its leadership in China’s luxury car market, reflecting the country’s growing demand for sustainable vehicles and its strategic importance for foreign companies.

While Tesla enjoyed strong sales momentum, Chinese domestic brands also set records in August. BYD, China’s largest EV manufacturer, sold a record-breaking 373,100 new energy vehicles (NEVs), and Li Auto, another emerging player, reported a 37.8 percent increase in monthly deliveries. The strong performance by both foreign and local brands underscores the robust competition in the Chinese EV market.

Experts attribute Tesla’s success to China’s efforts to create a fair and open market for foreign businesses. “China has been fostering a welcoming business environment by building a unified national market and ensuring fair competition,” said Li Yong, a senior research fellow at the China Association of International Trade. He emphasized that this stands in stark contrast to the restrictive measures taken by some Western nations against Chinese companies.

Amid this positive outlook for foreign automakers in China, some Western countries, like the U.S. and Canada, have imposed additional tariffs on Chinese EVs, signaling growing tensions. However, experts believe that China’s open trade policies will continue to attract foreign investors, particularly in sectors like electric vehicles, where the country leads in innovation and market size.

Tesla’s record-breaking sales highlight the vast potential for foreign automakers in China, as the nation’s EV market continues to grow and evolve. With both local and international players competing fiercely, China remains a critical hub for the global EV industry.