Tesla records its initial annual sales increase, yet stock prices decrease as rivalry intensifies
Tesla shipped close to 463,000 vehicles globally during the third quarter, marking a 6% increase from its year-ago sales figure and a 4% rise from its second-quarter deliveries this year.
Tesla's consistent year-on-year sales growth and its prediction of further growth have significantly contributed to its stock holding the highest market value among automakers globally.
However, Tesla is now facing tougher competition from traditional car manufacturers introducinig their own electric vehicle models.
The first and second quarters of this year saw Tesla's sales drop by 9% and 5% respectively, marking the first time in its history to report two sequential quarters of decrease in sales. Even though it reported an increase in sales as of Wednesday, its year-to-date deliveries of 1.3 million vehicles still witnessed a 2% decline compared to the previous year.
GM announced on Tuesday that its US electric vehicle sales surged by 60% compared to the same period last year and by 46% compared to the second quarter. However, GM's US EV sales only amounted to 32,000 vehicles, significantly less than Tesla's sales. Tesla does not disclose its sales by market, so its exact US sales figures are unknown.
Tesla is also facing stiff competition from Chinese automakers' electric vehicle offerings, particularly in Europe. In this recent quarter, Tesla maintained its lead over Chinese automaker BYD, which briefly overtook Tesla in global electric vehicle sales last year. BYD reported global third-quarter battery electric vehicle sales of 313,000 and year-to-date sales of 1.2 million electric vehicles. However, BYD's year-to-date sales increased by nearly 12%, while Tesla's witnessed a decline.
Tesla's shares (TSLA) dipped by around 4% on Wednesday, bringing the shares back to nearly where they were at the beginning of the year.
Tesla's successful sales momentum in the third quarter, despite facing competition, is crucial for its business growth. The company's constant efforts to outperform competitors in the electric vehicle market are essential to maintaining its market position.
