Tesla slashes prices of cars globally amid falling sales
As Tesla faces intense competition in China and poor demand due to a lack of inexpensive new models, June-quarter deliveries likely declined 6%, the first time the leading EV producer has shown two straight quarters of loss.
An average estimate from 12 analysts questioned by LSEG, seven of whom lowered their estimates in the preceding three months, predicts 438,019 vehicle deliveries for April to June. Results are due Tuesday from the EV maker.
Tesla has hit a speed bump after years of tremendous expansion that made it the world’s most valuable manufacturer. In January, it warned that 2024 delivery growth would be “notably lower” as months-long price cuts fade.
Due to a market shift to cheaper gasoline-electric hybrid vehicles, Tesla has a rising inventory of automobiles it is seeking to sell with price discounts, incentives, and cheaper financing and leases.
Some investors worry that autonomous technology will be difficult to perfect after Tesla CEO Elon Musk postponed ambitions to develop a new, cheaper electric car and focused on robotaxis earlier this year. Still, investors overwhelmingly approved his record $56 billion pay package at the annual shareholder meeting last month.
Dan Levy of Barclays expected Tesla’s biggest second-quarter delivery reduction ever, 11%. He adds “a soft delivery result could turn attention back to the currently challenging fundamental environment for Tesla” .
BYD sales rise, close Tesla gap
image credit:Byd
Tesla’s stock has lost 25% of its value this year, making it one of the worst performers on the S&P 500, despite Musk’s April projection that sales would rise. He cut costs by mass-firing Tesla’s supercharging team.
BYD’s strong second-quarter sales lifted Tesla shares 6.1% on Monday.
Comment Template