Tesla's declining vehicle deliveries signal it's losing EV dominance
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Tesla deliveries slipped again last quarter compared to a year ago amid growing competition and uneven demand for EVs.
Why it matters: The company still holds the scepter as the top-seller of EVs in the world, but its grip is loosening.
Zoom in: Tesla delivered 443,956 vehicles in the second quarter, 4.8% fewer than it did last year.
- But the number was better than analysts were expecting, and the company's shares surged 10.2% Tuesday to $231.26 — narrowing their loss to over 17% over the past 12 months.
Zoom out: China, which is the biggest EV market in the world and accounted for about 23% of Tesla's sales last year, presents a growing problem.
- Despite aggressive price cuts and promotions in the country, a Bloomberg report earlier this morning said shipments from Tesla's Shanghai factory fell 24% in June.
- The data didn't distinguish Tesla's domestic sales in China versus exports, but the report suggested the company typically focuses the last month of the quarter more on local deliveries.
Meanwhile in the U.S., Tesla's sales accounted for about half of EVs sold as of May, down from about 62% a year ago.
- Its aging lineup has given consumers more reasons to look elsewhere.
- BMW, Ford, Hyundai, Kia, Mercedes and Rivian, among others, grew their sales by 50% or more.
What we're watching: Tesla reports earnings on July 23, and will hold its fully autonomous robotaxi event on Aug. 8.
