Tesla reported an increase in sales for the third quarter of this year, delivering nearly 463,000 vehicles worldwide. This is a 6% increase from the same period last year and a 4% increase from the second quarter of this year. Despite the increase, Tesla’s year-to-date sales still trail last year’s figures. The company’s history of steady year-over-year sales gains and its forecast of continued gains have contributed to its high market value compared to other automakers.
However, Tesla is facing increased competition from established automakers who are offering more electric vehicle models of their own. The first and second quarters of this year saw Tesla report declines in sales for the first time in the company’s history, with drops of 9% and 5%, respectively. Even with the increase in sales reported for the third quarter, Tesla’s year-to-date deliveries are down 2% from the previous year.
General Motors reported a significant increase in US EV sales compared to a year ago, with a 60% climb in sales and a 46% increase compared to the second quarter. Despite this growth, GM’s sales are still only a fraction of Tesla’s, with 32,000 vehicles sold in the US. Tesla does not break out sales by market, so its precise US sales numbers are not known.
Tesla is also facing competition from Chinese automakers, particularly in Europe. During the third quarter, Tesla remained ahead of Chinese automaker BYD in worldwide EV sales. BYD reported global third-quarter battery electric sales of 313,000 and year-to-date sales of 1.2 million EVs. BYD’s year-to-date total is up nearly 12%, contrasting with the decline in sales at Tesla.
Following the news of increased competition and a decline in sales, shares of Tesla (TSLA) fell by around 4% on Wednesday. This drop brought shares back to approximately where they were at the start of the year. Despite the challenges and competition facing Tesla, the company remains a leader in the electric vehicle market and continues to push forward with innovation and growth.
