Tesla Inc (NASDAQ:TSLA) is struggling in Europe, where its sales dropped 49% in April compared with the same month last year, even as demand for battery-electric vehicles rose nearly 28%. The steep decline marks the Silicon Valley EV maker's fourth consecutive monthly fall in registrations and reflects growing reputational and competitive challenges in the region.
Tesla sales in the EU slumped for a fourth consecutive month as Musk's EV maker struggled to cash in on a growing market in the bloc where Chinese rivals are expanding.
Chinese tech giant Xiaomi unveiled its second electric vehicle late Thursday, intensifying competition with Tesla Inc (NASDAQ:TSLA) and domestic rival BYD Co (HKG:1211, LSE:0HKY, OTCQX:BYDDY) in the world's largest EV market. The new mid-to-large-sized YU7 SUV boasts a driving range of up to 835 kilometers (519 miles) for its single-motor version, Xiaomi said.
[00:00:04] Doug McIntyre: Lee, Tesla may be one of the most troubled companies.
Xiaomi recently launched a new electronic vehicle that takes aim at Tesla's most popular car, the Model Y.
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Brand damage from CEO Elon Musk's political involvement and the potential loss of U.S. EV tax incentives threaten Tesla, Inc.'s near-term demand and margins. While autonomy projects and tariff relief offer some upside, these positives are unlikely to fully offset current sales and competitive pressures. Given limited growth prospects and aggressive valuation, I see more downside risk than upside for TSLA shares.
In Q2 and Q3, most of Tesla's revenue growth is coming from things it's already executing. The global Model Y refresh just wrapped in Q1, and it looks like demand - especially in Asia - is picking up again. Tesla is aiming to pilot a robotaxi program in Austin this June, using unsupervised Model Ys. If that goes well, they want to expand to more cities by the end of the year and scale up in 2026. Also coming into view is the Optimus robot project. Starting in 2027 and beyond, Tesla's bigger ideas start to come into play.
Now is the moment for Musk to channel his fury into executing on the company's long-promised pivot to driverless cars.
General Motors is betting that America's reticence to adopt electric vehicles is temporary. New batteries are helping it drive down the cost of its cars.
Known Tesla bull Dan Ives sees a ‘golden age' for Tesla based on AI and AVs, but that optimistic view faced a colder reality of trade-war fears.
The Wedbush analyst estimated that autonomous driving is a $1 trillion opportunity for Tesla.