EV Daily | Tesla Faces Challenges Amid Declining Deliveries, BYD and Others Advance in EV Tech

【Tesla】

tesla is facing a serious business challenge, with declining vehicle deliveries and automotive gross margins despite rising global EV sales. Financial struggles are highlighted by reliance on the sale of regulatory credits to avoid losses. The company's energy storage sector is its only positive aspect, but challenges are expected due to tariffs and increasing competition from suppliers like CATL and BYD. Musk's leadership and focus on autonomous driving, coupled with the limited vehicle launches like the Cybertruck, have alienated customers and suggest the need for new leadership. Despite these issues, Tesla's stock remains high due to Musk's influence.

Tesla's current stock value is significantly inflated, largely due to investor belief in Musk's claims about the company's advancements in self-driving and AI technology. However, skepticism arises as Musk has failed to meet self-driving promises over the years. The stock price is seen as an index of investor trust in Musk rather than reflecting Tesla's actual business performance.

Amid declining earnings, Tesla's stock price remains inflated due to investor belief in Musk's promises about solving self-driving and robotics challenges. His claims have been repeatedly delayed, and Tesla faces competition in autonomous driving from companies like Waymo. Despite this, Musk's position as CEO seems secure due to shareholder reluctance to replace him, fearing a stock crash.

Tesla's struggles with self-driving technology are evident as it plans to launch a small fleet for supervised rides, facing skepticism from industry veterans like former Waymo CEO John Krafcik. Musk's claims of Tesla's superiority in autonomous driving are contrasted with Waymo's significant progress. Tesla's sensor technology, relying on cameras, is cheaper but less effective than Waymo's comprehensive suite.

Despite introducing incentives like FSD transfers and loyalty discounts, Tesla struggles with demand for its vehicles, particularly the new Model Y. These discounts are seen as a way to boost sales amid declining customer loyalty, primarily due to Musk's controversial public presence. Tesla's approach to FSD transfers reflects its inability to deliver promised self-driving capabilities.



【BYD】

BYD's Yangwang U9 was a standout at the Shanghai Auto Show, showcasing a sleek and unique design from the company's luxury sub-brand. Meanwhile, BYD has been advancing its charging technology, introducing systems that offer fast charging comparable to traditional gas station visits.



【Others】

ZEEKR introduced its 9X MPV, its first PHEV, at the Shanghai Auto Show. The brand also showcased a diverse range of models and unveiled a new fast charger, indicating its rapid growth since its founding four years ago. NIO revealed its Firefly sub-brand vehicles, focusing on affordability and simplicity, potentially appealing to younger demographics and European markets.

San Francisco launched a curbside EV charging pilot program with it’s electric, introducing convenient Level 2 chargers without grid strain. These chargers help meet growing EV demand, contributing to the city’s climate goals with increased access to public charging.

Ask Aime: "Who is behind Tesla's inflated stock price despite declining earnings and self-driving delays?"