The dispute over EVs
🚙🔋 In 2023, global sales of new energy vehicles (NEVs) reached 13.03 million units, +29.8% in the year, according to a TrendForce report.
📉 Even so, the last year was one of slowdown - following the Chinese economy - as the market had grown at a much higher rate, of +54.2%, in 2022.
🔋 Sales of BEVs, battery electric vehicles, totaled 9.11 million units in 2023, +24% y/y. The other types of vehicles that make up the group are Plug-in Hybrid Electric Vehicles (VHEPs) and Fuel Cell Electric Vehicles (FCVs).
🏆 In 2023, Tesla led the BEV ranking with a market share of 19.9%, followed by BYD, which expanded its sales internationally.
🇨🇳 The Chinese EV market is the largest in the world, with 60% of the market share - but with the country's internal slowdown, Chinese automakers have been exporting more and more and putting pressure on Tesla's margins.
🪫 TESLA | Yesterday the company led by Elon Musk released its 1Q24 results, which were below analysts' expectations. Tesla shares still rose, as the market welcomed the announcement of new launches of more affordable vehicles.
With adjusted earnings per share of $0.45 and revenue of $21.03 billion, the company missed Wall Street estimates of $0.49 and $22.27 billion, respectively.
386,810 EVs were delivered during the quarter, down from 433,371 in the same period in 2023.
In the fight against the Chinese, EV price cuts impacted vehicle gross margin, which fell to 11.6% in the first quarter from 17.6% in the previous three-month period.
📊 Big Numbers #Tesla 1Q24:
• Vehicles delivered: 386K -9% y/y
• Revenue $21.3B -9% y/y
• Gross margin: 17% (-2pp y/y)
The TrendForce study signals that the EV market is expected to slow down in 2024, and that BYD will cause a headache for Tesla - but it also highlights that new trade barriers to the Chinese could affect this fight.
So, which EV would you buy or intend to buy? Tell us here 👇🏻🔋🚙
Sources: TrendForce, RI Tesla