Tesla stares down a second year of dwindling sales
The carmaker now needs to deliver more than one million vehicles in the typically strong second half to avoid another annual sales decline — a task that some analysts say could prove difficult due to tariff-driven economic uncertainty and threats to phase out key EV incentives under the Trump administration's sweeping tax bill, including the $7,500 (R131,620) credit on new sales and leases.
It reported on Wednesday that deliveries fell 13.5% in the second quarter, missing analysts' expectations, despite Musk saying in April that sales had turned a corner.
Shares, down about a quarter this year, rose 4.5% as the drop was less severe than the bleakest analysts views, partly helped by a modest demand recovery in the competitive Chinese market, where its refreshed Model Y has gained some traction.
Some investors welcomed the numbers, though with caution.
'You need two dots to draw a line. I don't think you can get too excited yet until you have some confirmation (of a demand recovery),' said Camelthorn Investments adviser Shawn Campbell, who personally holds Tesla shares. 'We've had so much bad news — almost any good news is going to help at this point.'
While Tesla has leaned on offers such as low-cost financing to boost demand, it is yet to roll out long-promised cheaper models in a market where snazzy and feature-packed EVs from its Chinese rivals have been winning over buyers.
Tesla had said it would start producing a cheaper vehicle — expected to be a pared-down Model Y — by the end of June, but Reuters reported in April it was delayed by at least a few months.
An escalating feud between Musk and US President Donald Trump over the tax bill has also worried investors as it could potentially alienate more buyers after Musk's embrace of right-wing politics eroded demand in Europe and the US and increase regulatory scrutiny of the robotaxis that are central to its nearly trillion-dollar valuation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
eNCA
10 hours ago
- eNCA
Humanoid robots embodiment of China's AI ambitions
Serving craft beer, playing mahjong, stacking shelves and boxing, the dozens of humanoid robots at Shanghai's World AI Conference (WAIC) this weekend were embodiments of China's growing AI prowess and ambition. The annual event is primed at showcasing China's progress in the ever-evolving field of artificial intelligence, with the government aiming to position the country as a world leader on both technology and regulation as it snaps at the United States' heels. Opening the event on Saturday, Premier Li Qiang announced China would set up a new organisation for cooperation on AI governance, warning the benefits of development must be balanced with the risks. But in the cavernous expo next door, the mood was more giddy than concerned. "Demand is currently very strong, whether in terms of data, scenarios, model training, or artificial construction. The overall atmosphere in all these areas is very lively," said Yang Yifan, R&D director at Transwarp, a Shanghai-based AI platform provider. This year's WAIC is the first since a breakthrough moment for Chinese AI this January when startup DeepSeek unveiled an AI model that performed as well as top US systems for an apparent fraction of the cost. Organisers said the forum involved more than 800 companies, showcasing over 3,000 products -- the undeniable crowd pleasers being the humanoid robots and their raft of slightly surreal party tricks. At one booth, a robot played drums, half a beat out of time, to Queen's "We Will Rock You" while a man in safety goggles and a security vest hyped up a giggling crowd. AFP | - Other droids, some dressed in working overalls or baseball caps, manned assembly lines, played curling with human opponents or sloppily served soft drinks from a dispenser. While most of the machines on display were still a little jerky, the increasing sophistication year-on-year was clear to see. The Chinese government has poured support into robotics, an area in which some experts think China might already have the upper hand over the United States. At Hangzhou-based Unitree's stall, its G1 android -- around 130 centimetres tall, with a two-hour battery life -- kicked, pivoted and punched, keeping its balance with relative fluidity as it shadowboxed around a ring. Ahead of the conference's opening, Unitree announced it would launch a full-size humanoid, the R1, for under $6,000. - 'Digital humans' - Most high-tech helpers don't need hardware though. At the expo, AI companions -- in the form of middle-aged businessmen, scantily clad women and ancient warriors -- waved at people from screens, asking how their day was, while other stalls ran demos allowing visitors to create their own digital avatars. Tech giant Baidu on Saturday announced a new generation of technology for its "digital humans" -- AI agents modelled on real people, which it says are "capable of thinking, making decisions, and collaborating". The company recently ran a six-hour e-commerce broadcast hosted by the "digital human" of a well-known streamer and another avatar. The two agents beat the human streamer's debut sales in some categories, Baidu said. Over ten thousand businesses are using the technology already, the department's head Wu Chenxia told AFP. Asked about the impact on jobs -- one of the major concerns raised around widespread AI adoption -- Wu insisted that AI was a tool that should be used to improve quality and save time and effort, which still required human input. For now, few visitors to the WAIC expo seemed worried about the potential ramifications of the back-flipping dog robots they were excitedly watching. "When it comes to China's AI development, we have a comparatively good foundation of data and also a wealth of application scenarios," said Transwarp's Yang. "There are many more opportunities for experimentation."
The Citizen
18 hours ago
- The Citizen
Omoda C5 X Series doesn't just marks the spot, it hits the spot
New crossover SUV models swap out much-criticised CVT for dual-clutch transmission. Opinions vary over every aspect of Chinese carmaker from manufacturing to after sales backup. Except for one thing. The Chinese learn damn fast and apply what they've learned in no time. The Omoda C5 is just another case on point. The crossover SUV has been the cornerstone of Chery-owned Omoda & Jaecoo's local success since its debut just over two years ago. During this time, O&J twice introduced a lower-priced entry-level model to the C5 range. And more recently, two X Series models have joined the range below the S variants. These offer dual-clutch transmission (DCT) as an alternative to the much-criticised CVT gearbox. At a reduced price nogal. Omoda C5 X Series arrives The Omoda C5 Lux X DCT and Elegance X DCT have replaced the standard Lux CVT and Elegance CVT models. At R425 900, the Lux X DCT is R52 000 cheaper than before and the Elegance X DCT R42 000 less at R465 900. The Citizen Motoring recently sampled the Omoda C5 in Elegance X DCT guise. Lowering pricing usually goes with cutting some fat, but in this case, O&J actually found a way of adding a whole lot. These come under the skin, styling, space, spec and after sales backup. Apart from the gearbox upgrade, the X Series also features hardware enhancements in the form of improved brake pedal response and replacing of the torsion beam rear suspension with a multi-link setup. Improved looks The front end, which futuristic styling helped the Omoda C5 make a grande local entrance in 2023, now features a redesigned matrix grille and headlights and new bumper. The LED daytime running lights motif is also more in line with its bigger C9 sibling. No changes were made to the rear, while we thought new 17-inch black alloy wheels adds to C5 X Series' overall appeal. Inside, the materials on the doors have been upgraded, along with the addition of a more powerful 50-watt wireless charger. These features alongside the carried-over set of goodies which includes dual 10.25-inch screens, wireless Apple CarPlay and Android Auto and Hello Chery voice recognition system. The comprehensive set of safety features also stay unchanged. The Omoda C5 Elegance X rides on 17-inch black alloy wheels. Picture: Jaco van der Merwe Designers have also somehow managed to eek out more boot space in a structure featuring the same architecture. It has gone up from 378 litre to a very respectable 442 litres. Omoda C5 X sticks to familiar mill The service plan, which is standard alongside a five-year/150 000km warranty and 10-year/one-million km engine warranty for the first owner, has been upgraded. It goes from a two-year/30 000km plan to a five-year/70 000km contract. ALSO READ: Omoda C5 range adjusted again to include new X Series pair Besides all these valuable additions, the real hardcore deal breaker for Omoda C5 X Series – besides its price – is the six-speed DCT gearbox. Like the CVT, it is mated to a 1.5-litre turbo petrol engine which sends 115kW of power and 230Nm of torque to the front wheels. The drive mode selector also now include Normal mode alongside the Eco and Sport modes. While a DCT box over a CVT must be regarded as an upgrade all day every day, is it by no means perfect. Our biggest gripe with it the shuddering when coming to a stop. The Omoda C5 Elegance X features two 10.25-inch digital screens. Picture: Jaco van der Merwe Slow to react But to be fair to the box, it is not solely to blame for drivetrain annoyances. Loads of low-down turbo lag and typical Chinese throttle calibration issues do not help its cause. A much-delayed response during acceleration from a standstill, followed by too much power, is all to familiar. And that is sadly something that no driving mode software or gearbox mechanism can fix. ALSO READ: Omoda C5's price drops below R350 000 with new Street variant Omoda claims the DCT will sip 6.9 litres per 100km compared to the CVT's 7.4L/100km. But as we've seen so many times with this mill in various models regardless of transmission, our consumption just dipped under 10L/100km after a week of city traffic. All in all, the Omoda C5 Elegance X DCT is a very appealing package at a very competitive price. Even if your heart isn't completely sold because of the drivetrain issues, your head is likely to overrule it taking into account what is on the table.
IOL News
19 hours ago
- IOL News
Trump's Tariffs Must Sow the Seeds for a National Reawakening
President Cyril Ramaphosa and his Chinese counterpart President Xi Jinping. China must be persuaded to localise the manufacturing of its automotive brands in South Africa. This is not a charity request; it is a strategic proposal, says the writer. Image: GCIS Zamikhaya Maseti On August 1, 2025, South Africa will enter a zone of strategic economic pain, engineered not by global market fluctuations, but by the vengeful hands of conservative economic nationalism. The United States, under the reins of Donald J. Trump, will impose a 30 per cent tariff on all goods and products exported from South Africa to the American markets. This is not a policy of trade readjustment; it is a geoeconomic act of hostility. The justification, wrapped in the language of "reciprocity," is in reality a strategic blow aimed at disciplining South Africa's geopolitical posture and diplomatic boldness. Trump's economic nationalism, which sits at the ideological centre of Conservative Republicanism, is not merely inward-looking. It is punitive, retaliatory, and profoundly regressive. It has shaken the global trade architecture, not to recalibrate it, but to bend it in favour of America's new mercantilist order. This doctrine does not merely target trade imbalances; it punishes defiance. South Africa is now paying the price for standing on principle, particularly for its posture on Palestine and its landmark case against Israel at the International Court of Justice. It is clear, painfully so, that South Africa is being economically strangled not for what it trades, but for what it believes. Some Western analysts, ever keen to defend the status quo, will dispute this. They will search for economic rationality in an act that is blatantly political. Let them continue their intellectual gymnastics. This moment calls for clarity, not politeness. The truth is that Trump's worldview is transactional and tribal, and in that logic, South Africa has become collateral. That South Africa is seen as an irritant in Washington's new world order is not coincidental; it is structural. And let it be said without fear, Trump's policy on South Africa is influenced not only by economic calculations but by the mythologies peddled by actors like AfriForum and Elon Musk, who have exported the lie of white genocide into America's political bloodstream. But this is not the time for victimhood, nor is it the moment for diplomatic lamentation. It is time for South Africa to do some difficult thinking and embrace a new, muscular pragmatism. Diplomatic efforts, however noble, are unlikely to change Trump's position. Minister Parks Tau and his diplomatic team may work tirelessly, but they are facing a political machine that does not respond to nuance. Trump's narrative is fixed, and in that narrative, South Africa is an unfriendly trading partner whose tariffs harm American interests. He argues, correctly or not, that South African import duties and market access protocols are unfavourable to US goods. That argument, however flawed, resonates with his domestic base, and therefore it will stand. The United States will not blink, and it will not backtrack. Thus, it is not sufficient for South Africa to hope against hope; it must respond. Minister Parks Tau, trade envoys, and industrial leaders must now do the hard intellectual and strategic labour of repositioning the country's economic posture. Nowhere is this urgency more pressing than in the automotive sector, a critical node of South Africa's manufacturing ecosystem. This sector is not only a source of direct jobs; it sustains a complex web of downstream industries, from component manufacturing and logistics to retail and after-market services. It is here that the 30 per cent tariff will hit hardest, and it is here that innovation, not inertia, must be summoned. The sector must accept that the American market, for the foreseeable future, has lost ground. The time has come for South Africa to pivot decisively toward other markets, especially those aligned with its economic diplomacy ambitions. The first option lies in the African Continental Free Trade Area (AfCFTA), the single largest integrated market on the continent, and the largest globally by number of countries. With over 1.3 billion people and a combined GDP exceeding $3.4 trillion, the AfCFTA offers South Africa a natural and politically friendly trading space. Sub-Saharan Africa, in particular, presents high-value demand for affordable, durable automotive products, especially among its emerging middle classes and youthful populations. Research shows that more than 60 per cent of the region's population is under the age of 25, representing a long-term demand curve that is not speculative, but empirically grounded. Yet, South African companies have been slow to leverage this opportunity. There remains an unhealthy fog of Afro-pessimism and the lingering delusion of South African exceptionalism. These intellectual blindfolds must be cast aside. Africa is not a dumping ground; it is a destination for growth. The automotive industry must shift from waiting for trade to come to it and instead begin creating strategic partnerships in East, West, and Central Africa. This includes setting up joint ventures, service hubs, and low-cost satellite assembly plants across regional economic communities. The second and equally strategic option lies in a new industrial partnership with China. The presence and popularity of Chinese-made vehicles in the South African domestic market has reached a saturation point. They are competitively priced, technologically competent, and now represent a serious challenge to traditional brands. But if left unmanaged, this trend could lead to the hollowing out of South Africa's manufacturing base. South Africa must use its BRICS membership as a strategic lever. China must be persuaded to localise the manufacturing of its automotive brands in South Africa. This is not a charity request; it is a strategic proposal. Chinese companies should be invited to co-invest in high-tech manufacturing and assembly infrastructure in Eastern Cape, Gauteng, and KwaZulu-Natal. This could take the form of co-assembled production alongside legacy OEMs like Mercedes-Benz SA, which now face looming layoffs. The South African government must incentivise this localisation through targeted industrial policy, special economic zones, and technology-sharing frameworks. In this regard, the principle of 'South Africa Inc' must be revived with urgency. Under President Cyril Ramaphosa, South Africa Inc refers to the coordinated use of economic diplomacy, government strategy, and business networks to advance national economic interests abroad. Its objectives are to integrate South African companies into key markets, attract strategic investment, and drive regional industrialisation. In Southern Africa, this approach has already delivered notable success, such as increased South African corporate presence in Zambia, Namibia, and Mozambique, particularly in retail, finance, and energy sectors. Now is the time to bring the automotive sector under this umbrella. South African diplomatic missions across Africa and Asia must be tasked explicitly with facilitating market entry, assembling policy frameworks, and brokering industrial partnerships for local manufacturers. This is not merely export promotion; it is the safeguarding of South Africa's industrial sovereignty. In conclusion, the Trump tariffs should not be seen as the end of a trade relationship, but as the beginning of a deeper national reawakening. The South African government must retool its economic diplomacy, its industrial incentives, and its regional vision. The automotive sector, in particular, must abandon old comfort zones and rise to this moment with the courage of imagination and the rigour of strategy. What is at stake is more than exports; it is the future of South Africa's industrial identity. * Zamikhaya Maseti is a Political Economy Analyst with a Magister Philosophiae (M. PHIL) in South African Politics and Political Economy from the University of Port Elizabeth (UPE), now known as the Nelson Mandela University (NMU). ** The views expressed do not necessarily reflect the views of IOL, Independent Media or The African.
