Tesla’s quarterly deliveries fall for the first time in years, as “new energy vehicles” come for its battery-powered throne
Model Less... Tesla's streak of record quarterly deliveries is over. For the first time in over two years, Tesla’s deliveries fell from the previous quarter. The big T delivered 254,695 cars during the quarter that ended in June — fewer than expected and down by nearly 60K from the previous quarter. A few reasons for the slowdown:
- China's Covid crackdown: The zero-tolerance policy hurt Shanghai output. Tesla had to halt production at its largest factory for weeks because of citywide lockdowns.
- Global growing pains: Tesla’s having trouble ramping up production at its newest factories, in Germany and Texas, which Elon has called “gigantic money furnaces.”
NEV-er say never... Tesla's still the leader in battery-only EVs, but its stock has fallen 42% this year as rivals edge closer to the Technoking's lead. On the one hand, Tesla’s dealing with mounting electric competition from auto OGs like Volkswagen, GM, and Ford. On the other, it's dealing with rising EV and “new energy vehicle” (NEV) companies, especially in the key market of China.
- "New energy": The term China uses to denote plug-in vehicles eligible for gov’t subsidies. That includes battery-only vehicles (like Tesla) and hybrid plug-ins and fuel-cell cars.
- Dethroned? BYD, a Chinese car company backed by Warren Buffett, has surpassed Tesla as the world's largest EV producer by sales. The catch: not all its vehicles are battery-only. Many are hybrid plug-ins. Still: all are NEVs.
New energy could be Tesla’s new enemy… While Tesla’s famous for its battery-only whips, plug-in hybrids have a battery plus a regular engine for longer journeys — but are still considered “zero emission” under China’s sales rules. That means they get the benefit of less #RangeAnxiety but just as much subsidy support. That flexible NEV status helped BYD quadruple deliveries to 641K cars in the first half of the year, compared to Tesla’s 565K.