The latest reports on electric vehicle (EV) sales are causing concern among Tesla investors.
Tesla (TSLA -1.11%) is scheduled to release its quarterly vehicle delivery report tomorrow. In anticipation of this report, some investors are selling their shares. Tesla’s stock experienced a decline of up to 5% before recovering slightly, and by 2 p.m. ET, it was down by 2%.
Investor apprehension may have intensified following updates from several of Tesla’s competitors in China. Recent data indicates these competitors achieved record monthly EV deliveries in September. Additionally, General Motors reported a significant increase in its U.S. EV sales for the third quarter.
As General Motors reported a 60% rise in its quarterly EV sales, its share of the U.S. EV market reached 9.5%. This market share has been steadily growing throughout 2024 with the introduction of new EV models.
In China, a crucial market for Tesla, competition has been increasing. Manufacturers such as Nio, XPeng, and Li Auto collectively delivered over 96,000 EVs in September, marking a new monthly record for these companies. This figure represents a 44% year-over-year growth for these EV manufacturers.
The rise in competition in the EV market was anticipated for 2024, with both large and small manufacturers expanding their vehicle lineups. GM, for instance, is launching electric versions of its popular Chevy Blazer, Equinox, and Silverado models.
With Tesla’s stock having increased by 20% over the past month, some investors are cashing out, possibly interpreting the competitive data as unfavorable for Tesla. However, it is also possible that the earlier slowdown in EV sales growth might be reversing.
The upcoming release of Tesla’s third-quarter delivery results will provide more clarity. Analysts project approximately 463,000 deliveries, which would signify a 6.5% year-over-year increase. Should Tesla exceed these expectations, it could indicate an expanding overall EV market, which would be advantageous for Tesla and its stock.
Howard Smith, who authored the original article, holds positions in Nio, Tesla, and XPeng. The Motley Fool also holds and recommends Tesla shares, recommends General Motors, and has options on General Motors stock. Further details are available in their disclosure policy.
