- Tesla regains momentum after two years of declining sales
- China and Europe see rise in Tesla sales
- Tesla stock still fluctuated, despite the positive news.
Tesla’s second-quarter sales results have far exceeded market expectations, with growth in both Europe and China helping to drive a 25% increase compared to the same period last year.
According to The Financial Times, the electric vehicle pioneer delivered 480,126 vehicles in the three months to the end of June, up from 384,122 in the same period last year and well above analysts’ forecasts of 404,000.
Despite shifting its focus toward artificial intelligence and robotics in recent years, as well as trimming its model lineup to just two cars, Tesla has seen huge growth in Europe, helped in part by government incentives for electric vehicles.
The Guardian reports that the rising cost of fuel and the rapid adoption of electric vehicles in corporate fleets may also have played a role in boosting sales, while consumer reaction to CEO Elon Musk’s political statements last year may also have eased.
Despite the huge improvement in sales, BYD once again overtook Tesla to regain its position as the world’s largest battery electric vehicle manufacturer.
BYD sold about 867,000 electric vehicles in the first six months of the year, compared to 838,149 vehicles for Tesla, according to The Financial Times.
“Tesla hasn’t surprised this much on the upside in a while, a healthy sign that the auto business is here to stay,” William Blair analyst Jed Dorsheimer told the newspaper.
Analysis: Demand for electric vehicles is booming in Europe
Despite the CEO’s questionable political decisions and the company’s reputation for over-promising and often under-delivering, it’s still hard to argue that Tesla’s current crop of electric vehicles is anything less than excellent.
The company’s charging network remains one of the best, even if charging speeds are being eclipsed by numerous charging point operators, while its latest Model 3 and Model Y are the most comfortable, technological and luxurious ever.
Thanks to increased competition from both up-and-coming Chinese EV companies and traditional automakers, Tesla has been forced to be competitive with its pricing, offering attractive monthly deals on the Model 3 and Model Y.
It has also recently begun rolling out its supervised full self-driving system for the first time in select European countries, another factor that could help improve sales even further.
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