Tesla Climbs to 3rd on WSB as Stock Faces Pressure Amid Competitive Challenges
1min read Tesla has climbed to 3rd place in the latest WSB rankings, rising three positions from the previous day. However, its stock price has been under pressure, falling 3.49% recently, marking a two-day decline of 4.82%.
On October 2, Tesla announced its production and delivery report for Q3 2024. The company delivered 462,890 vehicles from July to September, marking a 6.4% year-over-year increase, though this was lower than analysts’ estimates of 463,897 units. The production count stood at 469,796 vehicles for the quarter.
Tesla faces growing competition across markets in the US, China, and Europe. In the US, Rivian and traditional automakers like GM and Ford are expanding their electric vehicle (EV) offerings. Furthermore, Rivian is gaining traction, while GM's and Ford's EV sales have increased.
In China, rival companies like BYD and Xpeng are setting new monthly delivery records, intensifying the competitive landscape. These dynamics, along with Tesla's price reductions and promotional activities, could potentially impact its profit margins.
The European market also presents challenges, with economic slowdowns and decreasing subsidies affecting EV demand. Despite Tesla's Model Y and Model 3 maintaining strong positions overall, local brands such as BMW and Volvo are starting to chip away at Tesla's market share.
Tesla aims to counter these pressures by advancing its Robotaxi project, which is set to be unveiled at a significant event on October 10. CEO Elon Musk highlighted this initiative, emphasizing its potential to become a pivotal moment in the company's history.
The push toward Robotaxi reflects Tesla's pivot to leveraging AI-driven autonomous technology as a strategic move to sustain growth and increase shareholder value, amidst heightened competition and fluctuating financial results.