Latest news with #SeagullEV
Yahoo
2 days ago
- Automotive
- Yahoo
Tesla's China-Made EV Sales Drop Y/Y in May: Is Price War a Suspect?
Tesla's TSLA sales of China-made EVs continued to decline for the eighth consecutive month in May due to intensifying price wars in the world's largest auto market. Per the China Passenger Car Association data, combined domestic and export deliveries to Europe and other markets of the Model 3 and Model Y dropped 15% year over year in May to 61,662 units, following a drop of 6% in April. Tesla's EV sales slump persisted across much of Europe last month, primarily due to its aging lineup and the negative impact of CEO Elon Musk's political involvement on consumer boost demand in China, its largest market in the first quarter, Tesla allowed smart-assisted driving features to be transferred to new vehicles in China starting in late May and continuing through the end of June. Additionally, the Model 3 and Model Y were included in a government initiative promoting EV adoption in rural areas for the first time this year. TSLA carries a Zacks Rank #5 (Strong Sell) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks which triggered a price war in 2023 that now involves more than 40 brands and shows no signs of easing, is under pressure from new, competitively priced EVs offering strong performance. China has called for an end to aggressive price wars, especially after BYD Company Limited BYDDY introduced new incentives on more than 20 models in late May, leading Geely Automobile Holdings Limited GELYY and Chery to adopt similar measures. BYD, Tesla's key contender, slashed the price of its cheapest model, the pure battery-powered Seagull EV, to 55,800 yuan. BYD's global passenger car sales rose 14.1% year over year in May, but the growth slowed from April's 19.4%.Geely Auto, an auto manufacturer based in Hangzhou, China, also reduced prices, offering discounts between 9,000 yuan and 16,000 yuan on selected models, such as the Xingyuan EV and entry-level Galaxy E8 sedan. Through these limited-time promotions, which ended June 1, Geely Auto aimed to stimulate sales, reduce inventory and benefit from government incentives intended to support EV transitions. Tesla has underperformed the Zacks Automotive-Domestic industry year to date. TSLA shares have lost 17.8% compared with the industry's decline of 14.8%. Image Source: Zacks Investment Research From a valuation perspective, Tesla appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 10.23, higher than its industry's 2.75. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 and 2026 EPS has moved down 13 cents and 16 cents, respectively, in the past 30 days. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Inicia sesión para acceder a tu portafolio
Yahoo
26-05-2025
- Automotive
- Yahoo
BYD just fired another shot in China's EV price war — and investors are worried
BYD just fired another shot in China's electric vehicle price war. The Tesla rival cut prices on 22 models last week, including its entry-level Seagull EV. Shares in Chinese EV makers tumbled on Monday as investors fretted over growing competition in the sector. China's EV price war just kicked up a notch — and investors are worried. Shares in some of Tesla's biggest Chinese rivals fell sharply on Monday after a raft of price cuts announced by BYD fuelled fears over the country's brutally competitive EV industry. BYD stock closed 8.6% lower in Hong Kong, after hitting record highs last week. Shares in auto conglomerate Geely and pick-up maker Great Wall Motors fell more than 9% and 5% respectively, while EV makers Xpeng, Nio, and Li Auto also posted falls. The declines follow BYD's decision last week to cut prices on 22 electric and hybrid models until the end of June. The discounts included BYD's already cheap Seagull electric hatchback, which has fallen from 69,800 yuan ($9,700) to 55,800 yuan ($7,750), according to a post on BYD's Weibo channel. China's EV market is in the grips of a brutal price war sparked by Tesla last year, as some 100 brands fight for a piece of the world's largest auto market. Industry figures have warned that the race to the bottom is not sustainable, with many Chinese EV startups still recording billions of dollars of losses every quarter. Volkswagen CEO Thomas Schäfer last year called the price war "ruinous" and said it could not last forever, while the boss of Xpeng warned in November that most Chinese car companies will not survive the next 10 years. BYD's price cuts come despite its sales booming this year — and not just in China. The company is on track to sell more than 5 million cars this year, and sold more electric vehicles than Tesla in Europe for the first time in April. Last week BYD unveiled the Dolphin Surf, the European version of the Seagull. The compact hatchback will go on sale in 15 European markets in June starting at 23,000 euros ($26,000) — about $19,000 less than Tesla's cheapest model. Read the original article on Business Insider Sign in to access your portfolio
Business Insider
26-05-2025
- Automotive
- Business Insider
BYD just fired another shot in China's EV price war — and investors are worried
BYD just fired another shot in China's electric vehicle price war. The Tesla rival cut prices on 22 models last week, including its entry-level Seagull EV. Shares in Chinese EV makers tumbled on Monday as investors fretted over growing competition in the sector. China's EV price war just kicked up a notch — and investors are worried. Shares in some of Tesla's biggest Chinese rivals fell sharply on Monday after a raft of price cuts announced by BYD fuelled fears over the country's brutally competitive EV industry. BYD stock closed 8.6% lower in Hong Kong, after hitting record highs last week. Shares in auto conglomerate Geely and pick-up maker Great Wall Motors fell more than 9% and 5% respectively, while EV makers Xpeng, Nio, and Li Auto also posted falls. The declines follow BYD's decision last week to cut prices on 22 electric and hybrid models until the end of June. The discounts included BYD's already cheap Seagull electric hatchback, which has fallen from 69,800 yuan ($9,700) to 55,800 yuan ($7,750), according to a post on BYD's Weibo channel. China's EV market is in the grips of a brutal price war sparked by Tesla last year, as some 100 brands fight for a piece of the world's largest auto market. Industry figures have warned that the race to the bottom is not sustainable, with many Chinese EV startups still recording billions of dollars of losses every quarter. Volkswagen CEO Thomas Schäfer last year called the price war "ruinous" and said it could not last forever, while the boss of Xpeng warned in November that most Chinese car companies will not survive the next 10 years. BYD's price cuts come despite its sales booming this year — and not just in China. The company is on track to sell more than 5 million cars this year, and sold more electric vehicles than Tesla in Europe for the first time in April. Last week BYD unveiled the Dolphin Surf, the European version of the Seagull. The compact hatchback will go on sale in 15 European markets in June starting at 23,000 euros ($26,000) — about $19,000 less than Tesla's cheapest model.
Yahoo
06-04-2025
- Automotive
- Yahoo
Elon Musk Thinks Tesla Will Become the World's Most Valuable Company, but This Glaring Problem Could Instead Lead to a 70% Plunge
Tesla (NASDAQ: TSLA) stock ended 2024 with a gain of 63%, partly because of President Donald Trump's November U.S. election win. Investors speculated that a looser regulatory environment -- and CEO Elon Musk's closeness with Trump and his inner circle -- could pave the way for Tesla to bring its autonomous driving and humanoid robotics platforms to market more quickly. According to Musk, these products could make Tesla the most valuable company in the world one day -- in fact, he thinks there is a possibility it could be worth more than the next five largest companies combined. Today, those five companies would be Apple, Microsoft, Nvidia, Amazon, and Alphabet, which are worth a combined $12.9 trillion. But there's a glaring problem which has already sent Tesla stock plunging by 41% from its December record high: The company is experiencing a sharp decline in its electric vehicle (EV) sales, which still account for most of its revenue. Here's why Tesla stock could buck Musk's prediction and deliver more downside instead. Tesla used to be the world's largest EV brand by sales, but China-based BYD snatched the throne by delivering more cars in the last two consecutive quarters. People appear to be choosing cheaper options like BYD's Seagull EV, which sells for just $10,000 in its domestic market, and is now moving into other regions, including Europe. Tesla simply can't compete at that price point. But the rise of other EV manufacturers is only part of the story. The Tesla brand also appears to be losing some of its shine organically, because it failed to grow sales during 2024. The company delivered 1.79 million cars for the year, which was a 1% decline compared to 2023. The result came just one year after Musk told investors he planned to grow EV production by 50% per year for the foreseeable future -- which simply isn't possible if the cars aren't selling. This year is is shaping up to be even worse. Tesla just revealed that it delivered 336,681 EVs during the first quarter (ended March 31), which was a whopping 13% decline compared to the year-ago period. The number was also significantly below Wall Street's average forecast of 377,590, which analysts had already revised down in the weeks leading up to the official release. Musk's involvement in global politics seems to be a key reason why many people are steering clear of Tesla. There have been growing reports of violence against Tesla dealerships and privately owned vehicles over the last few months, not just in the U.S., but also across Europe. Musk's leadership role in the Department of Government Efficiency -- an external group that's working with the U.S. government to cut what it calls "wasteful" spending to reduce the national debt -- is especially divisive among Americans. Tesla has a market capitalization of $886 billion as of this writing, making it three times more valuable than Toyota, despite selling 83% fewer cars last year. Simply put, Tesla's valuation isn't grounded in the realities of its EV business right now. Instead, investors are focusing on a series of future products that haven't actually hit the market yet. One of them is the Cybercab, which is designed to run on the company's full self-driving (FSD) software. Tesla's goal is to establish a ride-hailing network where its robotaxis can autonomously haul passengers and earn revenue for the company around the clock (like Uber, except without human drivers). Tesla's FSD software isn't approved for unsupervised use on American roads just yet, but Musk is hopeful it will be active in Texas and California sometime this year. There are some substantial expectations for the Cybercab on Wall Street. Dan Ives from Wedbush Securities thinks autonomous vehicles represent a trillion-dollar opportunity for Tesla, and Cathie Wood's Ark Investment Management predicts that autonomous ride-hailing alone will catapult the company to a $8 trillion valuation by 2029. But Musk is eyeing an even bigger opportunity: humanoid robots. He believes they will outnumber humans by 2040 as we defer repetitive jobs, dangerous tasks, and even household chores to them. Tesla plans to build several thousand of its Optimus humanoid robots during 2025, but Musk thinks annual production could top 100 million units in the coming years. It's unclear whether demand will ramp up equally fast, but nevertheless, Musk recently told investors that Optimus could bring in a mind-boggling $10 trillion in revenue over the long term. As bright as Tesla's long-term future might be, EV sales still account for 79% of the company's revenue, so the recent declines are going to have highly negative effects on its financial results. Tesla's 2024 earnings per share (EPS) plunged by 53% to $2.04 on the back of the modest decline in EV sales last year, so its bottom line could take an even bigger hit in 2025 should the company not improve on its delivery numbers. Tesla stock trades at an eye-popping price-to-earnings (P/E) ratio of 130.9. That makes it four times as expensive as the Nasdaq-100 index, which hosts most of Tesla's big-tech peers and trades at a P/E ratio of just 29.2. It's also significantly more expensive than Apple, Microsoft, Nvidia, Amazon, and Alphabet. In order for Tesla to become more valuable than all five of those companies combined (as Musk predicts), its stock would have to soar by 1,350% from where it trades as of this writing. Its current P/E ratio makes that practically impossible, especially if the company's EPS continues to shrink -- which is likely if its EV sales continue to head south. Products like the Cybercab and Optimus aren't expected to go into mass production until 2026 or later, which means Tesla has to find a way to buoy its EV business for at least the next couple of years. Unfortunately, it's facing so many headwinds -- from brand damage to competition -- that righting the ship could take a significant amount of time. I don't think Tesla's upcoming products will come to market fast enough to offset its floundering EV business, which is why I believe its stock is likely to plummet from here. It would have to decline by 73% just to trade in line with the P/E ratio of Nvidia, which is one of the fastest-growing companies in the world. It would also have to decline by 78% just to align with the P/E ratio of the broader Nasdaq-100. Those scenarios could be on the table in the coming year or so. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $244,570!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $35,715!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $461,558!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of April 5, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has the following options: long April 2025 $200 puts on Tesla and long April 2025 $210 puts on Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, Tesla, and Uber Technologies. The Motley Fool recommends BYD Company and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Elon Musk Thinks Tesla Will Become the World's Most Valuable Company, but This Glaring Problem Could Instead Lead to a 70% Plunge was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
06-04-2025
- Automotive
- Globe and Mail
Elon Musk Thinks Tesla Will Become the World's Most Valuable Company, but This Glaring Problem Could Instead Lead to a 70% Plunge
Tesla (NASDAQ: TSLA) stock ended 2024 with a gain of 63%, partly because of President Donald Trump's November U.S. election win. Investors speculated that a looser regulatory environment -- and CEO Elon Musk's closeness with Trump and his inner circle -- could pave the way for Tesla to bring its autonomous driving and humanoid robotics platforms to market more quickly. According to Musk, these products could make Tesla the most valuable company in the world one day -- in fact, he thinks there is a possibility it could be worth more than the next five largest companies combined. Today, those five companies would be Apple, Microsoft, Nvidia, Amazon, and Alphabet, which are worth a combined $12.9 trillion. But there's a glaring problem which has already sent Tesla stock plunging by 41% from its December record high: The company is experiencing a sharp decline in its electric vehicle (EV) sales, which still account for most of its revenue. Here's why Tesla stock could buck Musk's prediction and deliver more downside instead. Tesla's first-quarter delivery numbers are in, and they aren't good Tesla used to be the world's largest EV brand by sales, but China-based BYD snatched the throne by delivering more cars in the last two consecutive quarters. People appear to be choosing cheaper options like BYD's Seagull EV, which sells for just $10,000 in its domestic market, and is now moving into other regions, including Europe. Tesla simply can't compete at that price point. But the rise of other EV manufacturers is only part of the story. The Tesla brand also appears to be losing some of its shine organically, because it failed to grow sales during 2024. The company delivered 1.79 million cars for the year, which was a 1% decline compared to 2023. The result came just one year after Musk told investors he planned to grow EV production by 50% per year for the foreseeable future -- which simply isn't possible if the cars aren't selling. This year is is shaping up to be even worse. Tesla just revealed that it delivered 336,681 EVs during the first quarter (ended March 31), which was a whopping 13% decline compared to the year-ago period. The number was also significantly below Wall Street's average forecast of 377,590, which analysts had already revised down in the weeks leading up to the official release. Musk's involvement in global politics seems to be a key reason why many people are steering clear of Tesla. There have been growing reports of violence against Tesla dealerships and privately owned vehicles over the last few months, not just in the U.S., but also across Europe. Musk's leadership role in the Department of Government Efficiency -- an external group that's working with the U.S. government to cut what it calls "wasteful" spending to reduce the national debt -- is especially divisive among Americans. Tesla's long-term catalysts could be more valuable than the EV business Tesla has a market capitalization of $886 billion as of this writing, making it three times more valuable than Toyota, despite selling 83% fewer cars last year. Simply put, Tesla's valuation isn't grounded in the realities of its EV business right now. Instead, investors are focusing on a series of future products that haven't actually hit the market yet. One of them is the Cybercab, which is designed to run on the company's full self-driving (FSD) software. Tesla's goal is to establish a ride-hailing network where its robotaxis can autonomously haul passengers and earn revenue for the company around the clock (like Uber, except without human drivers). Tesla's FSD software isn't approved for unsupervised use on American roads just yet, but Musk is hopeful it will be active in Texas and California sometime this year. There are some substantial expectations for the Cybercab on Wall Street. Dan Ives from Wedbush Securities thinks autonomous vehicles represent a trillion-dollar opportunity for Tesla, and Cathie Wood's Ark Investment Management predicts that autonomous ride-hailing alone will catapult the company to a $8 trillion valuation by 2029. But Musk is eyeing an even bigger opportunity: humanoid robots. He believes they will outnumber humans by 2040 as we defer repetitive jobs, dangerous tasks, and even household chores to them. Tesla plans to build several thousand of its Optimus humanoid robots during 2025, but Musk thinks annual production could top 100 million units in the coming years. It's unclear whether demand will ramp up equally fast, but nevertheless, Musk recently told investors that Optimus could bring in a mind-boggling $10 trillion in revenue over the long term. Tesla stock could plunge by another 70% As bright as Tesla's long-term future might be, EV sales still account for 79% of the company's revenue, so the recent declines are going to have highly negative effects on its financial results. Tesla's 2024 earnings per share (EPS) plunged by 53% to $2.04 on the back of the modest decline in EV sales last year, so its bottom line could take an even bigger hit in 2025 should the company not improve on its delivery numbers. Tesla stock trades at an eye-popping price-to-earnings (P/E) ratio of 130.9. That makes it four times as expensive as the Nasdaq-100 index, which hosts most of Tesla's big-tech peers and trades at a P/E ratio of just 29.2. It's also significantly more expensive than Apple, Microsoft, Nvidia, Amazon, and Alphabet. TSLA PE Ratio data by YCharts. In order for Tesla to become more valuable than all five of those companies combined (as Musk predicts), its stock would have to soar by 1,350% from where it trades as of this writing. Its current P/E ratio makes that practically impossible, especially if the company's EPS continues to shrink -- which is likely if its EV sales continue to head south. Products like the Cybercab and Optimus aren't expected to go into mass production until 2026 or later, which means Tesla has to find a way to buoy its EV business for at least the next couple of years. Unfortunately, it's facing so many headwinds -- from brand damage to competition -- that righting the ship could take a significant amount of time. I don't think Tesla's upcoming products will come to market fast enough to offset its floundering EV business, which is why I believe its stock is likely to plummet from here. It would have to decline by 73% just to trade in line with the P/E ratio of Nvidia, which is one of the fastest-growing companies in the world. It would also have to decline by 78% just to align with the P/E ratio of the broader Nasdaq-100. Those scenarios could be on the table in the coming year or so. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $244,570!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $35,715!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $461,558!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. *Stock Advisor returns as of April 5, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has the following options: long April 2025 $200 puts on Tesla and long April 2025 $210 puts on Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, Tesla, and Uber Technologies. The Motley Fool recommends BYD Company and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
