Tesla Was Ready For Q2 China Comeback — But It Didn't Happen

Core Viewpoint - Tesla Inc reported a 13.5% year-over-year decline in vehicle deliveries for the second quarter, with significant impacts attributed to the Chinese market [1] Group 1: Delivery Performance - Tesla's vehicle deliveries in the second quarter were down 4.3% quarter-over-quarter and down 11.7% year-over-year, totaling 128,803 vehicles delivered in China [2] - The company experienced a decline in first-quarter deliveries as well, indicating ongoing demand struggles globally [1] Group 2: Market Dynamics - Despite initial expectations that the Model Y refresh and discounts would boost demand in China, the anticipated increase in deliveries did not materialize [3][5] - Tesla offered record discounts, including 0% financing on the Model 3 and Model Y during parts of the second quarter, yet this did not lead to improved sales [5] Group 3: Competitive Landscape - Tesla faces increasing competition in China from local manufacturers such as Xpeng and Xiaomi, which offer electric vehicles priced lower than the Model Y, contributing to the decline in demand [6] - The competitive pressure in China is compounded by brand damage and boycotts faced in Europe and the U.S. [6]