Tesla, Inc. (TSLA) global sales have declined for a second consecutive quarter. For the period April through June 2024, the electric vehicle (EV) maker lost 4.8% in comparison to its performance a year ago.
According to the latest numbers, shipments from its Shanghai factory took a year-on-year 24.2% dive. This is the fourth time this year that sales numbers were down. Analysts attribute this decrease to rising competition in the industry and a drop in demand for EVs.
Tesla indicated that it sold 443,956 vehicles in Q2 2024 as opposed to the 466,140 sold during the same time a year ago. The Associated Press (AP) reported that the recent quarterly sales were, however, better than the predicted expectations of 436,000.
This better-than-expected result boosted Tesla trading and the company’s shares clocked out 10.2% in the green at $231.26 apiece on Tuesday 2 July 2024.
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Rivian Automotive, Inc. (RIVN), another EV producer, also topped analyst expectations. The firm’s Q2 production of 9,612 vehicles and shipment of 13,790 outdid the analyst predictions of 8,700 and 11,510 respectively. The company’s stock ended Tuesday trading 6.97% higher than the previous day.
Despite these positive market performances, both companies face increasing pressure from other corners of the industry. Tesla’s sales drop comes after it reduced the price of three of its models by $2,000. The latest statistics also show that most of this company’s sales were in its less expensive, smaller models.
Tesla will post its Q2 2024 results on 23 July 2024.
