Tesla, led by CEO Elon Musk, may soon reclaim its title as the top electric car maker in the world. Despite a challenging start to 2024, things are looking up for the company. China’s BYD reported a more than 40% drop in sales for the first three months of the year, paving the way for Tesla to potentially surpass them. Tesla’s quarterly delivery numbers are set to be revealed on Wednesday, and analysts expect the company to once again take the lead in EV sales.
In a filing on the Shenzhen Stock Exchange, BYD announced that they sold around 300,000 EVs in the first quarter of 2024, marking a significant decline compared to the previous quarter. Meanwhile, Tesla is projected to report the delivery of 458,500 vehicles during the same period, representing a slight decrease from the previous quarter but still enough to surpass BYD. Both companies have faced challenges this year as consumer interest in electric cars seems to be waning in favor of cheaper hybrid vehicles.
Tesla’s stock has dropped by 30% in 2024, raising questions about its place among other mega-cap tech stocks. Analysts from big firms like Wells Fargo, Bernstein, and Wedbush Securities have all lowered their price targets for the company. On the other hand, BYD’s shares have also dropped this year due to missing profit targets and concerns about losing market share to competitors such as Xiaomi which recently launched its first electric vehicle. Investors are keeping an eye on BYD’s performance in face of new entrants into EV market.
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