A better-than-expected delivery report from Tesla this week hurt speculators banking on a price fall. The company's shares have risen 17% in the two trading days after the second-quarter announcement, costing short sellers $3.5 billion, according to S3 Partners.
Tesla shares are up 73% from April's annual low. After closing at $246.39 on Wednesday, the stock is close to wiping its year-long losses. Short interest in Tesla is 3.5% of its float, or 97 million shares, worth $22.4 billion, according to CNBC.
The EV maker delivered 443,956 units in the second quarter, above Wall Street expectations of 439,000. Delivery declined 4.8% year-over-year, less than the 8.5% reduction in the first quarter. Despite increased Tesla vehicle demand, this report offered little insight into corporate performance.
Tesla Faces Intense Competition
Tesla sales are down due to an older portfolio and growing competition. The firm offers discounts and low-interest financing to increase sales. In the second quarter, Tesla lowered pricing in Germany and Norway and offered China zero-interest loans. In the United States, it provided rear-wheel-drive Model 3 buyers with a three-year, 2% APR financing option.
The company's newest model, the Cybertruck, has had four voluntary recalls in the US in less than a year due to quality concerns.
Tesla's earnings report later this month will reveal its financial health. Analysts estimate sales to fall 2.9% to $24.2 billion after falling 9% in the first quarter.
According to Guggenheim Partners analyst Ronald Jewsikow, Tesla financing promotions drove volume growth but dragged demand forward, making it difficult to generate fresh demand in the third quarter and beyond.
TechTimes recently reported on a Counterpoint Research study forecasting that BYD will outsell Tesla in battery electric vehicle (BEV) sales this year, strengthening its market dominance.
According to Counterpoint, the development shows "the dynamic nature of the global EV market." CNBC predicted 426,039 BYD second-quarter BEV sales, up 21%. Second-quarter Tesla deliveries declined 4.8% to 443,956 units.
BYD produced over 3 million battery-only and hybrid cars last year, surpassing Tesla's 1.84 million. While Tesla led BEV production, BYD produced 1.6 million battery-only passenger vehicles and 1.4 million hybrids.
BYD dominates the BEV market, notably in China, after losing Tesla in the first quarter. Counterpoint Research anticipates four times higher BEV sales in China than in North America in 2024.
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Major Tesla Software Update Unveiled
Amid the challenges Tesla is facing, it makes sure that its in-vehicle software is updated often. Tesla's 2024.26 software update includes pin-locked parental controls and YouTube Music, which enhances Tesla owners' experiences.
Tesla's parental control feature restricts speed and acceleration to "chill" mode, as previously reported. Users may also engage the Tesla mobile app's Night Curfew, Automatic Emergency Braking, Forward Collision Warning, and Speed Limit Warning to get warnings when the car breaches the curfew.
Tesla cars previously had Spotify, Apple Music, TuneIn, and Tidal installed. The upgrade added YouTube and Amazon Music.
Tesla's navigation systems improve with sub-destinations, such as airport terminals, delivering more detailed routing information. Weather and air quality status bars will appear on vehicle center screens.
Moreover, users may now schedule preconditioning and charging using the Tesla mobile app or updated menu. Users may now choose a location, schedule one-time events, repeat hours or days, and set charging start and finish periods.
The 2024.26 Tesla software update may take weeks to reach all eligible Tesla vehicles. The June 2024.20 update added adaptive lighting, air conditioning, and the Beach Buggy leaderboard for select Tesla cars.
