Reported 12 months ago
Despite a slight decrease in delivery volume for Tesla in the second quarter, the drop was less than market expectations and beat its competitor, BYD, securing its position as the world's leading electric car maker. CEO Musk's warning to short-sellers, coupled with optimism about resolving self-driving issues and producing the Optimus robot, drove Tesla's stock price up by 10.2% to $231.26 per share on July 2, increasing its market value by over $60 billion to $724.6 billion. The company announced global deliveries of 443,956 vehicles in Q2, surpassing expectations of 420,000 vehicles and BYD's 426,039 vehicles. Tesla's production volume was 418,316 vehicles, a 14% drop from the previous year but seen as a positive sign to address inventory backlog due to slower sales. Tesla's growth slowdown reflects challenges in the electric car sector, with competitors launching new models and reducing prices but facing lower-than-expected demand. Musk's investments in developing cost-effective vehicles and betting on robots and self-driving tech present his biggest test yet as he aims for significant returns. Analysts remain optimistic, with Tesla's target price raised to $300 and potential to reach $400, indicating a growth potential of about 70%. The second-quarter delivery performance suggests Tesla may have passed its worst phase, and positive changes in demand are expected by late 2025, with Tesla's AI value likely exceeding $1 trillion, making it a highly underestimated AI brand.
Source: YAHOO