Tesla enthusiasm is maintained with the announcement of Tesla China sales on the first week of December, at 21,900 units. We can't compare this to last year's numbers, because they are usually not available week by week, but we can compare them to BYD's sales in China that week, at 85,000 units... which hardly justifies the crushing sound that Tesla pretends to hear. Looking back into November 2024 numbers (Tesla touted record sales of 73,490 vehicles, a 12% growth y/y), the reality is not rosy: the BEV market grew in China that month 29% y/y, so Tesla is losing market share even in the restricted BEV market, while the EV market grew at 47% y/y due to the phenomenal growth of 86% of the PHEV (hybrid EVs) market, which means that Tesla is losing significant market share in the largest EV market of the planet. Pretending you are having a great month when you lose market share used to be frowned upon by Wall Street. But we appear to live on the other side of the mirror now 🤣. Let us see how this unbounded enthusiasm evolves when we receive the full 2024 delivery numbers for Tesla and BYD!
R. Charles P.
3mo
My humble take on the « Tesla enthusiasm », as far as the company’s valuation and current stock price is concerned, is that it is a bubble, a fluke, not based in reality… Tesla proposes a product that needs an abundance of electricity which we cannot provide… and caters to a very limited market, people living in urban areas with plenty of charging infrastructures, and with no real dependence on a car (either for personal or professional purposes), and when they do need to drive it’s for short distances (also, while the majority of Republican voters prefer and/or need gas guzzlers, most Western Tesla buyers vote Democrat / Left, and many are now saying they regret buying Tesla had they known Musk was pro-Trump, which makes the market for Tesla even more limited as of Nov 2024). Today, and the real reason I believe this is a bubble/fluke, is that people have bought Tesla stock because they think they are buying into Musk as an entity… but Tesla is only one of his companies… and more importantly, if Musk sneezes, where is Tesla then?! You’ll never see a guy like Warren Buffet buying Tesla stock and that says a lot… everything in fact.
Michel Vrinat
3mo
Why are people so happy and proud of making one guy the richest man on earth in history ? They think he will share with them ? The US stock market doesn’t mean anything anymore.
Pierre Haren, Their marketing has succeeded. Current enthusiasm is on promise being made for new models, new products. They are able to take the attention to the future and ignore the past. I am one of the stockholders who wants to ride this tide. Do you think announcements on new products, analyst feedback are released (intentionally) at the time when released sales numbers are low ?
And now some results on the European market: https://electrek.co/2024/12/19/tesla-tsla-sales-in-europe-are-down-14-year-to-date-and-its-time-to-worry/ If Tesla loses market share in China and declines in revenue in Europe, we can only count on a wonderful quarter in the US to save 2024... Are you betting on that?