BYD Poised To Surpass Tesla In EV Sales As US And Europe Demand Wanes
Portfolio Pulse from Shivani Kumaresan
BYD Company (OTC:BYDDY) is poised to surpass Tesla Inc. (NASDAQ:TSLA) in annual electric vehicle sales in 2024 due to growing demand in China, while demand in the U.S. and Europe wanes. Tesla reported its fourth consecutive quarter of disappointing profits and warned of a lower growth rate in 2024. Legacy automakers like General Motors Co. (NYSE:GM) and Ford Motor Co. (NYSE:F) may benefit from sustained profits in internal combustion engines and hybrids.
July 24, 2024 | 2:00 pm
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NEGATIVE IMPACT
Tesla reported its fourth consecutive quarter of disappointing profits and warned of a lower growth rate in 2024. The company is behind its 1.8 million car sales from last year and missed the consensus earnings estimate.
Tesla's disappointing earnings and lower growth forecast are likely to negatively impact its stock price in the short term.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
BYD is poised to surpass Tesla in annual EV sales in 2024 due to growing demand in China. However, U.S. and European tariffs may limit its growth to Asia and emerging markets.
BYD's strong sales performance in China positions it to surpass Tesla in EV sales, which is likely to positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Ford may benefit from sustained profits in internal combustion engines and hybrids as demand for battery EVs weakens.
Sustained profits from internal combustion engines and hybrids could positively impact Ford's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Weakening demand for battery EVs means that internal combustion engines, including hybrids, will sustain profits for legacy automakers like General Motors.
Sustained profits from internal combustion engines and hybrids could positively impact GM's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50