Tesla's $19.14B Volume Plummets 30% as Global Sales Wane and BYD Surges

Tesla (TSLA) shares closed down 1.35% on September 2, with a trading volume of $19.14 billion, a 30.03% decline from the prior day. The stock’s underperformance aligns with ongoing concerns over weak sales in critical markets and intensifying competition. Global demand for Tesla vehicles has shown signs of deterioration, particularly in Europe and India, where sales have plummeted in key territories.

European sales for Tesla dropped 40% year-on-year in July, marking its seventh consecutive monthly decline. The automaker’s market share in the EU, UK, and EFTA regions fell to 0.7%, while Chinese rival BYD surged to 1.1% with 225% higher registrations. Tesla’s aging Model 3 and Model Y models struggle to compete against newer, more affordable offerings from rivals. In France, Sweden, and Denmark, Tesla’s sales fell by 47.2%, 84%, and 42%, respectively, outpacing broader market trends. Despite a refreshed Model Y, the brand faces reputational challenges and rising competition from both legacy automakers and Chinese EV producers.

India, a strategic growth market, has also underperformed. Tesla received only 600 orders since launching sales in July, far below internal targets. High import tariffs push the Model Y to around $70,000, limiting accessibility for the growing middle class. Meanwhile, Turkey remains a bright spot, with August sales up 86% year-on-month, though this has not offset broader declines. Analysts attribute Tesla’s struggles to product stagnation, pricing pressures, and Elon Musk’s polarizing public image, which has eroded consumer trust in Europe.

Recent geopolitical tensions further weigh on investor sentiment. A public dispute between Musk and former President Donald Trump over government subsidies reignited concerns about potential policy shifts. Trump’s call for a review of Musk’s companies’ subsidies, coupled with Musk’s criticism of the “Big Beautiful Bill,” added volatility to the stock. Despite efforts to cut costs, Tesla’s pricing strategy remains uncompetitive against Chinese rivals like BYD, which leverage more efficient supply chains.

Tesla’s second-quarter results underscored these challenges: revenue fell 12% year-on-year to $22.5 billion, net income dropped 16%, and deliveries declined 14% to 384,122 units. Analysts highlight the need for new product launches, regulatory clarity, and progress in AI and Full Self-Driving technology to reverse the trend. However, production delays and a lack of affordable models threaten to widen Tesla’s competitive gap in Europe and Asia.

Backtest results for TSLA indicate a current price range with resistance near $350 and support around $330. A breakout above $350 would require stronger delivery numbers or product announcements, while continued sales weakness could drive further declines. The stock’s trajectory remains closely tied to Tesla’s ability to address demand trends and rebuild market confidence in its core regions.