Tesla and BYD record over 11 lakh EV sales in Q2

financialexpress.com:

Tesla and BYD set sales records in the second quarter, widening their lead as the world’s best-selling electric-car makers. Elon Musk-led Tesla delivered 4,66,140 cars worldwide, beating Wall Street estimates. BYD, China’s top-selling car brand, posted its best-ever quarter, selling 7,00,244 fully electric and plug-in hybrid vehicles.

Tesla’s stock rose more than 6% in premarket US trading, while BYD’s jumped as much as 5% in Hong Kong. Shares of EV battery suppliers Contemporary Amperex Technology Co. Ltd. and LG Energy Solution Ltd. also advanced.

Tesla has vowed to push for more volume even if it’s at the expense of profitability, putting more pressure on legacy carmakers that haven’t kept pace on EVs and have been ceding overall market share. Volkswagen AG last week announced new leadership for its Audi brand, which fell behind Tesla in the first quarter.

“It’s a big beat,” Ben Kallo, a Robert W. Baird analyst, said by phone Sunday. “People were still bracing for another round of price cuts, and this big delivery number makes that less of a risk.”

The deliveries are the most ever in a quarter for Austin-based Tesla and an 83% increase from a year ago. The company produced 13,560 more vehicles than it delivered in the quarter after output exceeded sales by almost 18,000 cars in the first quarter.

“Everyone was worried about inventory build, and it looks like they’ve normalized,” Kallo said. “The delta between production and deliveries is shrinking, which is what Tesla said they would do.”

In addition to cutting prices across the lineup this year, Tesla has introduced perks such as three months of free fast-charging in the US to entice buyers. Some analysts have predicted price cuts will continue into next year.

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