Latest news with #EVsales
Yahoo
2 days ago
- Automotive
- Yahoo
Analyst Explains Impact of Trump's Bill on Tesla (TSLA) – ‘Direct Hit to Cash Flow'
Tesla, Inc. (NASDAQ:TSLA) is one of the . Jed Dorsheimer, William Blair energy and power tech group head, recently talked about Tesla during a program on CNBC. He believes Trump's new tax bill will directly impact the company. 'I mean it's going to affect the cash flow of the business certainly. And so when you look at the combination of the $7,500, that just meant that the pricing of US vehicles are going to get more expensive. Or they're going to have to cut the pricing in order to keep that same level of demand, and that will cut into margins and affect cash flow. And then the tax credits going away in terms of the zero emission — that, you know, is a direct hit to cash flow.' Tesla's EV sales are falling all over the world as the company faces challenges from competitors. Even if Elon Musk increases his focus to fix the company's problems, it would take a lot of effort to come out of the demand crisis. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years. Photo by J Dean on Unsplash Macquarie Large Cap Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter: 'At the individual stock level, the greatest contribution was attributable to not owning Tesla, Inc. (NASDAQ:TSLA), and our positions in Intercontinental Exchange Inc. (ICE) and Visa Inc. Tesla faced well-publicized headwinds last quarter that may bleed into future periods. This has remained a constant stock of debate among the investment community and is volatile as a result. The business has never met our quality standards and we are happy to sit on the sidelines of this battleground stock.' While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
Demand for Elon Musk's Tesla Cybertruck plummeted in the second quarter, new data shows
Sales of the Cybertruck, Tesla's electric pickup, plunged 51% year-on-year in Q2 to just 4,300 vehicles, according to Cox Automotive. Design head Franz von Holzhausen had confirmed in December 2023 the company had collected deposits to fill over 2 million orders — enough to fill production for 16 years. Instead, the high price combined with build quality problems means it is looking less likely the Cybertruck will even eclipse its 2024 sales of 39,000 vehicles. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service The Insurance Savings You Expect It's probably a good thing Tesla refuses to publish detailed sales figures, otherwise everyone could see just how badly Elon Musk's Cybertruck seems to have flopped. Only in its second full year on the market, the full-size electric pickup saw a staggering 51% year-on-year decline in demand during the past three months, according to new data published by market researcher Cox Automotive. The extimated 4,300 sold in Q2 were even eclipsed by rivals from legacy brands, including the Ford F-150 Lightning and GMC Hummer EV truck. 'Suffice it to say, the hyper-competitive EV market is providing the troubled automaker no relief,' Cox Automotive reported, referring to Tesla. The company, which reported only aggregated quarterly global sales at the start of this month, did not respond to a request from Fortune for comment. Tesla said at launch it had deposits to fill 2 million orders Launched at the end of 2023, the Cybertruck had collected deposits for 2 million vehicles, design chief Franz von Holzhausen confirmed at the time. With Tesla officially installing capacity to build north of 125,000 vehicles annually, that was the equivalent of 16 years of demand before the company would have to find more customers. No wonder Tesla had initially hoped to double assembly line output by mid-2025 in order to meet this tidal wave. Yet those orders either keep getting pushed back or reservation holders have simply refunded their deposits. With 10,700 Cybertrucks sold through the first half, it's looking increasingly doubtful the model will crack the 39,000 units sold in 2024. The chief complaint about the vehicle has been just how far short it came to matching the original price promised in during its reveal, despite having two extra years' time in development. The most popular Cybertruck, the all-wheel-drive version with one motor each for powering the two axles, clocks in at $80,000 without extras instead of the $50,000 promised at its reveal in November 2019, when reservation owners could make a deposit. Multiple recalls and quality problems dogged the Cybertruck Then there were the build problems: two official investigations by U.S. federal traffic safety officials and eight recalls in all just for the 2024 model year. The most recent was perhaps also the most damaging for its image, as customers shared videos online in which they complained the glue holding parts of the truck's stainless steel exterior sheet metal in place failed, causing the panels to dangle precariously. The questionable quality of its underlying engineering was furthermore shown in numerous videos. Most notably, critics criticized Tesla's decision to substitute a conventional steel frame for less durable aluminum castings that can break when towing enough weight. On Tesla fan forums, opinions are now divided as to what if anything should be done about Musk's expensive flop. Some argue the vehicle should be scrapped for a more conventional look while others feel its iconoclastic take on the otherwise timeless pickup ought to be kept as Musk intended. Some relief should come in the current quarter as buyers previously on the fence could opt in favor of a purchase before the $7,500 federal tax credit expires at the end of September. 'The second half of the year will be a critical test of EV demand. Q3 will likely be a record, followed by a collapse in Q4,' argued Stephanie Valdez Streaty, senior analyst for Cox Automotive. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Automotive
- Yahoo
New Tesla report reveals staggering extent of automaker's problems with Cybertruck: 'The final product was disappointing'
While more drivers are going electric, interest in Tesla's Cybertruck seems to be diminishing, as a new report revealed sales aren't living up to expectations. What's happening? According to Electrek, a Tesla delivery report revealed the EV company planned for a Cybertruck production capacity of more than 250,000 units annually. However, the company is selling just about 20,000 units per year. "The final product was disappointing in that the promised specs were not delivered," one commenter wrote. Tesla's second-quarter report also showed results from the brand's "other models" category, which includes the Cybertruck. Other models sales are significantly lower now than before the Cybertruck joined the group, per Electrek. The Cybertruck also faced stiff competition from other electric pickups on the market. While sales for Ford's F-150 Lightning dipped year over year, the automaker still sold about 5,800 units. GM had an edge in the category too, given the combined sales of its various electric pickup options. Why are electric vehicle sales important? Another report found that at least 1 in 4 cars sold worldwide in 2025 will be an EV. Per the International Energy Agency, the market is expected to exceed 20 million EVs sold this year. Experts have called EV market growth a vital factor in curbing the effects of heat-trapping pollution. According to the Environmental Protection Agency, EVs produce zero tailpipe emissions, making the planet-friendly options a more efficient way to travel than gas-powered alternatives. Despite the booming EV market, Tesla sales have struggled in 2025. Some analysts have attributed the downfall to Tesla CEO Elon Musk's involvement in politics. According to Reuters, Tesla needs to deliver more than 1 million vehicles in the second half of the year to prevent an annual sales drop. What's being done about Tesla? There have been some signs of a turnaround for Tesla in Europe. Teslarati reported that EV registrations spiked in the United Kingdom, Spain, and the Netherlands, with Tesla topping EV sales charts for June. The company also introduced the updated Model Y in Australia, which prompted a boost in sales in May. For the time being, it seems like drivers can find a good deal in the used EV market. A report found that some older Tesla models were being sold for more than $50,000 below their original prices. Not only that, but buying a used EV can save drivers hundreds of dollars on gas and maintenance each year. How much cash back would it take for you to switch to an EV? $5k $10k $20k I already have one Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
3 days ago
- Automotive
- Daily Mail
Barefoot Investor Scott Pape exposes a growing concern with electric cars
The Barefoot Investor Scott Pape has highlighted a growing concern with electric vehicles after his own father bluntly refused to even consider one. Mr Pape explained his dad was looking to buy a new car when he suggested he consider investing in a Tesla 'I told him about the Model Y, which did something that would have that old Henry Ford turning in his grave. It rolled off the factory line last week and drove itself – no humans – 30 minutes to its new owner's house. 'And presumably, if you miss a repayment, it'll get a notification that you're a deadbeat, turn itself on, open the garage door, and silently creep back to the showroom in the middle of the night' But his dad wasn't interested. 'Why would I want a bloody electric car?' he fired back. Mr Pape explained his dad's concerns were not uncommon 'My old man's concerns with EVs were more practical: where he would charge it, how much it'd cost to fix, and what it'd be worth in a few years. 'And he's not alone. While the Government reckons we'll all be driving EVs soon, last month they made up just 10.3 per cent of car sales - and that's actually a record high Mr Pape warned car manufacturers would continue to discount prices, sending the value of used electric vehicles plummeting 'With China flooding our market with cheap electric cars, prices are only going one way. 'In China, BYD – the world's biggest EV maker – recently slashed its local car prices by 34 per cent overnight He said that while EVs may make you feel like you're doing the right thing, they're still money pits. 'Cars have always been a terrible investment Reflecting on how the car market is changing, Pape said his own childhood was defined by Ford vs Holden - but his kids will have a very different experience 'I'm convinced that, for my kids, cars will be like shopping for a TV at JB Hi-Fi: lots of weird-sounding Chinese brand names that get better and cheaper every year.
South China Morning Post
4 days ago
- Automotive
- South China Morning Post
China and Europe power 24% growth in global EV sales in June
Global sales of electric and plug-in hybrid vehicles surged 24 per cent in June from a year earlier, driven by strong demand in China and Europe, while the US fell behind, according to the market research firm Rho Motion. Advertisement A total of 1.8 million battery-powered electric vehicles (BEVs) and plug-in hybrids were sold last month, the London-based firm said on Tuesday. Sales in China jumped 28 per cent to 1.11 million units, or 60 per cent of the worldwide total, while Europe's demand rose 23 per cent to 390,000 units, according to the report. The US, the world's second-largest vehicle market after China, was the laggard, with sales in North America falling 9 per cent to just over 140,000 units, the data showed. Demand in the rest of the world surged 43 per cent to more than 140,000 vehicles, boosting the significance of the emerging markets of Southeast Asia and Central America, Rho Motion said. In the first half of this year, 9.1 million electric vehicles (EVs) were sold globally, a 28 per cent increase from a year earlier. China led with 5.5 million units, followed by Europe with 2 million and North America with 900,000. 10:08 How Chinese companies have pulled ahead of Tesla in the electric vehicle race How Chinese companies have pulled ahead of Tesla in the electric vehicle race '[The] EV sales figures for the first half of 2025 show that China and Europe are steaming ahead in terms of the electric transition,' said Charles Lester, data manager at Rho Motion. Advertisement Lester said he expected subsidies in China to continue in the second half despite 'reports that some cities' subsidies have run out, prompting expectations of a slowdown in the Chinese market'.
