Core Viewpoint - Tesla's true value may lie in its future product platforms, such as autonomous robotaxis and humanoid robots, rather than its current electric vehicle (EV) sales [1][10] Sales Performance - Tesla delivered 1.79 million EVs in 2024, marking a 1% decline from the previous year, which is the first annual drop since 2011 [5] - In Q1 2025, Tesla delivered 336,681 EVs, reflecting a 13% year-over-year decline [6] - For Q2 2025, Tesla delivered 384,122 EVs, also down 13% year-over-year, indicating a potential sharper annual decline in sales for 2025 compared to 2024 [6] Competitive Landscape - Tesla's sales in Europe fell by 40% in May, while the overall EV market in Europe grew by 26% [7] - Chinese EV brands have doubled their market share in Europe, presenting significant competition for Tesla [7] - Tesla's pricing strategy is challenged by competitors like BYD, which offers lower-priced models, making it difficult for Tesla to compete in key markets [8] Future Product Development - Tesla is focusing on its Cybercab robotaxi, which will operate on full self-driving software, avoiding a price war with competitors [9][10] - The goal is to have millions of Cybercabs generating revenue through passenger transport and small deliveries [10] Financial Implications - Tesla's total revenue shrank by 9% in Q1 2025, with earnings plummeting by 71% to $0.12 per share [13] - The stock is down approximately 34% from its peak, but the decline in earnings is more severe, leading to a high price-to-earnings (P/E) ratio of 173.4 [14] - Comparatively, major tech companies have an average P/E ratio of 35.4, indicating Tesla's stock may be overvalued [15] Market Outlook - If Tesla's FSD and Cybercab initiatives succeed, the current stock price may appear cheap in the long term, but regulatory hurdles remain [16] - Significant declines in stock value could occur if EV sales continue to drop or if the robotaxi business fails to gain traction [18]

Key Takeaways TSLA's China-made EV sales dropped 15% Y/Y in May, continuing an 8-month downward trend. Price wars and Elon Musk's political image are weighing on TSLA demand in China and Europe. TSLA added incentives like FSD transfer and rural EV inclusion to revive China sales.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 ...

BYD just scored a major win against Tesla in one of its biggest markets. The Chinese electric vehicle giant outsold Tesla in Europe for the first time last month, as Elon Musk's automaker saw its sales collapse amid furious backlash over its CEO's politics.BYD sold 7,230 battery-electric vehicles in April, compared to 7,165 for Tesla, according to JATO Dynamics data. It's a major milestone for the Chinese brand, and suggests BYD has taken advantage of Tesla's alarming decline in Europe.New Tesla registrat ...