- Tesla and BYD achieved record-breaking sales in Q2, solidifying their positions as top electric car makers. Tesla delivered 466,140 cars worldwide, surpassing estimates, while BYD sold 700,244 electric and plug-in hybrid vehicles. This led to a 6% rise in Tesla's stock and a 5% jump for BYD in premarket trading.
- Tesla's focus on increasing production volume, even at the expense of profitability, puts pressure on traditional carmakers lagging in the electric vehicle market. Tesla achieved its highest-ever quarterly deliveries, up 83% from the previous year. Despite producing 13,560 more vehicles than delivered in Q2, the trend continued from Q1 where production exceeded sales by nearly 18,000 cars.
Why it matters
Tesla has slashed prices and offered incentives to boost sales, such as free fast-charging in the US and insurance subsidies in China. While Tesla dominates the US market, it faces tough competition globally from companies with newer lineups. In China, Tesla has fallen behind BYD. Tesla recently reduced prices of its premium models in China by over 4.5%. Second-quarter earnings will be reported on July 19.
