Tesla’s second quarter sales aren’t as bad as feared, but the former leader is losing ground quickly to BYD
- Tesla’s first half sales fell 13% to 720,803 units. This was better than expected, but Elon Musk’s company fell even further behind Chinese arch rival BYD. The global EV has skyrocketed 41%, falling below the 1 million vehicle mark this year. The Bulls argue that the EV should not continue to be their sole focus now that Musk has launched his Robotaxi service.
Tesla I reported some good news on Wednesday. Global EV sales in the second quarter weren’t as close as many people feared. But that’s a bit of comfort as Elon Musk’s company has fallen behind the new industry leaders. byd.
Tesla sales crashed nearly 14% in the meantime Three months until June With just 384,122 vehicles, it’s only slightly worse than the pace of first quarter decline, and is in line with analyst consensus. Tesla’s stocks won 3.5% behind the surprise. Because most of the Tesla Bulls, which track stocks closely, expected to be close to 370,000 in the quarter.
“That -14% should be at the bottom.” I wrote it Gene Munster, a partner at Deepwater Asset Management. “The expiration of (US federal) tax credits drives demand forward and results as a measurable boost.”
The problem with Tesla is that Chinese automaker Bido left Elon Musk’s company in the dust. Just six months later, the 2025 BYD has already broken the sales mark of 1 million eV, compared to Tesla’s total of 720,803 vehicles in the first half.
Bidocrack 1 million
According to Regulation submission BYD was posted on the Hong Kong Stock Exchange on Wednesday June, surged to 206,884 fully electric vehicles, reaching seven figures this year. Separate ranges of plug-in hybrids where Tesla does not compete were not included.
Thanks to a research and development team that is roughly as large as Tesla’s global workforce, it has been able to pump out one common new model after another, but Tesla still relies on one vehicle. Model Y.
Faced with this competition, masks are turning away from the car, making it increasingly difficult for Tesla to sell EVs profitably. Instead, the CEO focuses on two areas, and Tesla believes it can differentiate itself. This is artificial intelligence in the form of a Robotaxi service or humanoid robot. But it is clearly a sacrifice Ignore it His Core Car Business.
For now, investors seem willing to give Musk the benefit of doubt as the stock has traded more than 110 times per share, an estimate of next year’s consensus revenue.
“Tesla’s autonomous future is Elon Musk’s laser focus and the key to investors.” I said Wedbush Securities Tech Analyst Dan Ives, phone Q2 Despite the sudden decline, we are aware of “big progress.”
He’s now He started his Robotaxi serviceMusk may be under pressure to prove that his AI bet is paying off soon. For example, providing evidence that the number of passenger miles booked to his Robotaxis scales as fast as he predicted.