Tesla, led by CEO Elon Musk, may soon reclaim its title as the top electric car maker in the world. After an abysmal start to 2024, things are looking up for the company. China’s BYD reported a more than 40% drop in sales for the first three months of the year, paving the way for Tesla to potentially surpass them.
In a filing on the Shenzhen Stock Exchange, BYD announced that they sold around 300,000 EVs in the first quarter of 2024, marking a significant decline compared to the previous quarter. Meanwhile, Tesla is projected to report the delivery of 458,500 vehicles during the same period, representing a slight decrease from the previous quarter but still enough to surpass BYD.
Both companies have faced challenges this year as consumer interest in electric cars seems to be waning in favor of cheaper hybrid vehicles. Tesla’s stock has dropped by 30% in 2024, raising questions about its place among other mega-cap tech stocks. Analysts from big firms like Wells Fargo, Bernstein, and Wedbush Securities have all lowered their price targets for the company.
However, despite these challenges, Tesla remains committed to expanding its presence in Asia and Europe. The company recently opened a factory in Shanghai that will produce Model Y SUVs for both domestic and export markets. In addition to this new factory, Tesla is also planning to build another factory in Berlin that will produce Model Y SUVs for European markets only.
On Wednesday, analysts expect Tesla to reveal its quarterly delivery numbers and take back its position as leader in EV sales once again. Despite facing stiff competition from Chinese manufacturers like BYD and new entrants like Xiaomi’s electric vehicle lineup, Tesla remains confident about its future prospects with continued innovation and expansion into new markets.”
