Q2 auto sales ran out of gas amid slowing rates of EV adoption, fierce competition and controversy swirling around owner Elon Musk. But the company is poised to rev up innovation, with hype around its automated driving and battery business growing. As part of our Consumer Technology focus , we ask: is this Tesla’s make-or-break moment? Tesla's sales are slowing, but investor hype is riding the possibility of future success / Unsplash Tesla, once an untouchable leader in the electric vehicle (EV) space , is feeling the heat from mounting competitive pressures and shifting market dynamics.
The company’s second-quarter earnings, reported late last month, offered both a snapshot of its current struggles and a glimpse into its long-term strategy. The weaker-than-expected performance saw US sales drop by 6.3% year-over-year (YoY) in Q2, even as the broader US EV market grew by 7.
3% over the same period, per Kelley Blue Book data. Globally, the company has maintained its position as the world’s top EV manufacturer, though global sales slid for the second consecutive quarter. And while revenue was up 2% YoY, reaching $24.
93bn, automotive revenue fell 7% from the same quarter last year. Meanwhile, the company is losing ground in critical EV markets like California. The state saw Tesla’s sales plummet 24.
1%, contributing to a 2.3 percentage point drop in market share in California compared to the same period last year. Plus, registrations of all-electric vehicles in California .