Tesla has faced a challenging start to 2024, but there may be a silver lining on the horizon for the electric car maker. Analysts are anticipating that the company, led by Elon Musk, will regain its position as the world's leading electric vehicle (EV) seller when it releases its delivery figures on Wednesday. This comes after losing the top spot to BYD just three months ago.
BYD, a Chinese company, disclosed in a filing on the Shenzhen Stock Exchange that it sold approximately 300,000 EVs in the first quarter of 2024. This figure represents a 43% decrease compared to the previous quarter. In contrast, Tesla is projected to announce deliveries of 458,500 vehicles for the same period, according to a survey of analysts by Visible Alpha. While this would signify a 5% decline from the last quarter of 2023, it is expected to be sufficient for Tesla to surpass BYD once again.
Both Tesla and BYD have encountered difficulties this year as consumer interest in electric cars appears to be waning in favor of more affordable hybrid options. Tesla's stock has plummeted by approximately 30% in 2024, resulting in a market value decrease of around $230 billion. This decline has prompted some to question whether the company warrants its position among the elite 'Magnificent Seven' mega-cap tech stocks.
Several financial institutions, including Wells Fargo, Bernstein, and Wedbush Securities, have recently lowered their price targets for Tesla. Wedbush analysts described the potential drop in deliveries as the culmination of a challenging quarter for the company. Meanwhile, BYD's shares on the Hong Kong stock exchange have fallen by 6% this year due to the company missing its annual profit targets. Investors are also concerned about potential market share losses to competitors like Xiaomi, which recently entered the EV market.
