Tesla stares down a second year of dwindling sales
The carmaker now needs to deliver more than one million vehicles in the typically strong second half to avoid another annual sales decline — a task that some analysts say could prove difficult due to tariff-driven economic uncertainty and threats to phase out key EV incentives under the Trump administration's sweeping tax bill, including the $7,500 (R131,620) credit on new sales and leases.
It reported on Wednesday that deliveries fell 13.5% in the second quarter, missing analysts' expectations, despite Musk saying in April that sales had turned a corner.
Shares, down about a quarter this year, rose 4.5% as the drop was less severe than the bleakest analysts views, partly helped by a modest demand recovery in the competitive Chinese market, where its refreshed Model Y has gained some traction.
Some investors welcomed the numbers, though with caution.
'You need two dots to draw a line. I don't think you can get too excited yet until you have some confirmation (of a demand recovery),' said Camelthorn Investments adviser Shawn Campbell, who personally holds Tesla shares. 'We've had so much bad news — almost any good news is going to help at this point.'
While Tesla has leaned on offers such as low-cost financing to boost demand, it is yet to roll out long-promised cheaper models in a market where snazzy and feature-packed EVs from its Chinese rivals have been winning over buyers.
Tesla had said it would start producing a cheaper vehicle — expected to be a pared-down Model Y — by the end of June, but Reuters reported in April it was delayed by at least a few months.
An escalating feud between Musk and US President Donald Trump over the tax bill has also worried investors as it could potentially alienate more buyers after Musk's embrace of right-wing politics eroded demand in Europe and the US and increase regulatory scrutiny of the robotaxis that are central to its nearly trillion-dollar valuation.
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