- Tesla is regaining momentum after two years of sales decline
- China and Europe are both seeing an increase in Tesla sales
- Tesla shares were still fluctuating despite the positive news
Tesla’s sales results for the second quarter have far exceeded market expectations, with growth in both Europe and China helping to drive a 25% increase compared to the same period last year.
According to The Financial Times, the electric car pioneer delivered 480,126 vehicles in the three months to the end of June, up from 384,122 in the same period last year and well above analysts’ forecasts of 404,000.
Despite shifting its focus to artificial intelligence and robotics in recent years, as well as trimming its model line-up to just two cars, Tesla has seen tremendous growth in Europe, helped in part by public electric car incentives.
The Guardian reports that the rising cost of fuel and the rapid adoption of electric vehicles in corporate fleets could also have played an important role in boosting sales, while consumer backlash to CEO Elon Musk’s political statements last year could also have abated.
Despite the big improvement in sales, BYD again surpassed Tesla to regain its position as the world’s largest battery electric car manufacturer.
BYD sold about 867,000 electric vehicles in the first six months of the year, compared with 838,149 vehicles for Tesla, according to The Financial Times.
“Tesla hasn’t surprised to the upside this much in a while, a healthy sign that the auto industry is here to stay,” William Blair analyst Jed Dorsheimer told the paper.
Analysis: Demand for electric cars is booming in Europe
Despite the CEO’s questionable policy decisions and the company’s reputation for over-promising and often under-delivering, it’s still hard to argue that Tesla’s current crop of electric vehicles is anything less than stellar.
The company’s charging network remains one of the best, although charging speeds are now eclipsed by several charging point operators, while its latest Model 3 and Model Y are the most comfortable, technology-focused and luxurious they’ve ever been.
Thanks to increased competition from both upcoming Chinese EVs and legacy automakers, Tesla has been forced to become competitive with its pricing, offering enticing monthly deals on the Model 3 and Model Y.
It also recently began rolling out its Supervised Full Self-Driving system in select European countries for the first time, another factor that could help improve sales further.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds.
