So, Doctor, is Tesla doing poorly or not?

In agony for some, facing a bright future for others, Tesla continues to divide opinions.

The least that can be said, and the numbers are stubborn, is that Tesla’s sales since the beginning of the year 2024 have been disappointing. According to the latest figures provided by the manufacturer itself, they have dropped for the second consecutive quarter. This is the first time in the company’s history that sales have declined compared to the previous year for two consecutive quarters. Tesla sold 443,956 cars between April and June. This represents a decrease of about 5% compared to the same period in 2023. However, it’s less than the 8% drop the company experienced in the first quarter.

So is it very serious? Considering that Tesla has mostly experienced periods of sales growth, it certainly seems so. In fact, aside from the COVID-19 pandemic and factory shutdowns, Tesla has never faced such a situation.

Tesla in the Chinese red?

But there is a ‘but’. As we write these lines, Tesla’s stock is surging by 10% and all financial analysts are praising the company’s performance and positive outlook! Certainly, numbers can be interpreted in various ways, but less has always meant less.

The sales reported by Tesla are actually slightly above all analysts’ forecasts, and especially higher than those of major rival BYD. The Chinese manufacturer announced earlier this week 425,000 sales for the second quarter of 2024. That’s 20% more than a year ago, but less than Tesla during the same period, and that has been enough for Tesla to outpace BYD and maintain its position as the global leader in purely electric vehicle sales. Even in the Chinese market, Tesla is performing better than just holding its ground against BYD.

However, when one curve rises while another falls, at some point they will intersect, and BYD should quickly reclaim the crown of the lord of Watts. Furthermore, Tesla has repeatedly offered discounts to maintain its sales levels while BYD is certainly not accused of receiving unjustified subsidies. The profitability match could quickly become unbalanced. The first element of response will arrive on July 23 with the publication of Tesla’s financial accounts and an unavoidable diagnosis.

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