https://edition.cnn.com/2024/01/24/business/tesla-earnings-sales-warning/index.html
Brand new Tesla cars sit parked at a Tesla dealership on October 18, 2023 in Corte Madera, California.
Justin Sullivan/Getty Images
New YorkCNN —
Tesla became the most valuable automaker in the world promising unmatched sales growth. But in the face of growing EV sales by rival brands, Tesla Wednesday backed off its former bullish sales targets.
Tesla has been cutting prices for more than a year to boost sales in the face of greater competition. As a result, the company’s 2023 deliveries were up 38% on the previous year. While that might sound like a big jump, the company previously said it was looking for a 50% annual growth rate when averaged over the course of several years.
On Wednesday it warned its “growth rate may be notably lower” in 2024 than it was last year. Tesla (TSLA) shares dropped 7.5% in premarket trade Thursday.
The fourth quarter marked the first time that the company lost the lead in global EV sales to Chinese automaker BYD.
CEO Elon Musk told analysts on a call that Chinese carmakers are “the most competitive car companies in the world” and “will have significant success outside of China.”
The remarks come as BYD, backed by Warren Buffett, has not only conquered its home turf, but is also making inroads into other markets. It pledged in December to open a factory in Hungary, its first production plant for passenger cars in Europe.
RELATED ARTICLE Mexico could help this huge Chinese carmaker crack the US market
Rising competition from BYD and other Chinese automakers has sparked an anti-dumping investigation by EU officials that could lead to the imposition of higher tariffs. And Musk — who once scoffed at Chinese EV brands — believes they now pose an existential threat.
“Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world,” Musk said.
Tesla’s 50% sales growth target has been a key factor in driving the stock higher and making the company the most valuable automaker on the planet, despite it delivering far fewer vehicles than more established automakers.
The company said its slower growth rate would come as “our teams work on the launch of the next-generation vehicle.”
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Elon Musk says Chinese electric car brands could ‘demolish’ rivals as Tesla earnings fall
Brand new Tesla cars sit parked at a Tesla dealership on October 18, 2023 in Corte Madera, California.
Justin Sullivan/Getty Images
New YorkCNN —
Tesla became the most valuable automaker in the world promising unmatched sales growth. But in the face of growing EV sales by rival brands, Tesla Wednesday backed off its former bullish sales targets.
Tesla has been cutting prices for more than a year to boost sales in the face of greater competition. As a result, the company’s 2023 deliveries were up 38% on the previous year. While that might sound like a big jump, the company previously said it was looking for a 50% annual growth rate when averaged over the course of several years.
On Wednesday it warned its “growth rate may be notably lower” in 2024 than it was last year. Tesla (TSLA) shares dropped 7.5% in premarket trade Thursday.
The fourth quarter marked the first time that the company lost the lead in global EV sales to Chinese automaker BYD.
CEO Elon Musk told analysts on a call that Chinese carmakers are “the most competitive car companies in the world” and “will have significant success outside of China.”
The remarks come as BYD, backed by Warren Buffett, has not only conquered its home turf, but is also making inroads into other markets. It pledged in December to open a factory in Hungary, its first production plant for passenger cars in Europe.
RELATED ARTICLE Mexico could help this huge Chinese carmaker crack the US market
Rising competition from BYD and other Chinese automakers has sparked an anti-dumping investigation by EU officials that could lead to the imposition of higher tariffs. And Musk — who once scoffed at Chinese EV brands — believes they now pose an existential threat.
“Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world,” Musk said.
Tesla’s 50% sales growth target has been a key factor in driving the stock higher and making the company the most valuable automaker on the planet, despite it delivering far fewer vehicles than more established automakers.
The company said its slower growth rate would come as “our teams work on the launch of the next-generation vehicle.”
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