Tesla Continues Strong Performance as Q2 Deliveries Exceed Expectations, While BYD Expands Globally with New Plant in Thailand

Tesla's stock continues to rise, with its Q2 deliveries surpassing expectations. Meanwhile, Chinese EV maker BYD enters a buy zone with close to one million vehicle sales in Q2, and announces the opening of a new plant in Thailand.

In the rapidly evolving world of electric vehicles (EVs), the second quarter of 2024 has seen significant developments that are reshaping the market landscape. Tesla, the current EV market leader, experienced a decline in sales, while China's BYD announced impressive gains and expansion plans [1].

BYD (002594.SZ) posted a remarkable 21% increase in second-quarter EV sales, reaching 426,039 units [1]. This growth was driven by a combination of factors, including steady demand in the Chinese market and successful expansion into international markets. In comparison, Tesla (TSLA.O) is expected to report a 6% decline in second-quarter vehicle deliveries [1], marking the first time the American automaker is set to post two consecutive quarters of decline.

One of the reasons for Tesla's sales dip is stiff competition in China, where local players like BYD have been maintaining steady growth [1]. Additionally, Tesla's lack of affordable new models has led to slowing demand [1]. By contrast, BYD has managed to expand its reach beyond China with the announcement of a new plant in Thailand [2]. This expansion will further bolster BYD's position in the global EV market.

Although Tesla has faced challenges in recent quarters, it's important to note that the EV market is still in its early stages, and growth is expected to continue [3]. For instance, Tesla's Chinese rivals, such as NIO (9866.HK), have reported impressive growth in the second quarter, with vehicle deliveries more than doubling to 57,300 units [1].

In summary, the second quarter of 2024 has brought significant changes to the EV market, with Tesla facing challenges in the form of declining sales and stiff competition from local players like BYD. Despite these challenges, the EV market is expected to continue growing, and companies like Tesla, BYD, and NIO will need to adapt to remain competitive.

References:

[1] Reuters. China's BYD posts 21% jump in Q2 EV sales, closing gap with Tesla. July 2, 2024. https://www.reuters.com/business/autos-transportation/chinas-byd-posts-21-jump-quarterly-ev-sales-closes-gap-with-tesla-2024-07-02/

[2] Finance.Yahoo. BYD to surpass Tesla in global EV sales in H2 2024. July 5, 2024. https://finance.yahoo.com/news/byd-set-surpass-tesla-bev-131318697.html

[3] Statista. Global electric vehicle (EV) sales volume from 2010 to 2025. https://www.statista.com/statistics/12664/worldwide-electric-car-sales/