Things Are Beginning To Look Up For Tesla But Competition In China Is Daunting

Author: Upwallstreet | September 04, 2024 02:41pm

Tesla Inc (NASDAQ:TSLA) had its best month of 2024, with surging EV sales in China during August. But, competition is going strong, with BYD Company Limited (OTC:BYDDY) posting new records. Chinese competitors are scaring off even legacy automakers like Ford Motor (NYSE:F). Ford has recently canceled its all-electric large SUV plans in the U.S., replacing it with a hybrid version due to pressure from Chinese comeptitors.

Tesla Sales In China Picked Up

According to the China Passenger Car Association, Tesla sold 86,697 EVs in China during August. Things are looking up according to data that the China Passenger Car Association released on Monday, showing that Tesla’s Shanghai factory shipments rose about 3% YoY. At the moment, Tesla is making only Model Y and Model 3 in China.

BYD Defies The EV Slowdown With A New Record

Following a record-breaking August, BYD has hit the 1 milion EV sales mark. BYD is cementing its leadership with new models and tech features luring in buyers. In August alone, BYD reported that sales grew 30% YoY. This is the third consecutive month that BYD has set a new NEV sales record. Also, with August’s performance, BYD marked an important milestone, having sold more than 1 million EVs this year.             

Ford reflects the struggle of western automakers.

Due to its decision to cancel the large, all-electric SUV on account of profitability issues, Ford wrote off $1.9 billion. Like its western peers, Ford is struggling to make profitable EVs. Ford also delayed the launch of the successor of its F-150 Lightning electric pickup truck that planned for next year to 2027. Ford openly acknowledged it is struggling with competition from China on several levels: vertical integration, low-cost engineering, multi-energy advanced battery technology and digital experiences with which they are expanding their global presence, in addition to the price war. 

Fortunately, there are players who raise the bar of the western front such as Worksport Ltd. (NASDAQ:WKSP) who is, among other things, a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for light trucks. Worksport just announced it expanded its cover lineup with 19 new models, including covers that are compatible with Ford, as well as pickups from General Motors (NYSE:GM), Toyota Motor (NYSE:TM), Nissan Motor Co Ltd (OTC:NSANY), and Honda Motor Co (NYSE:HMC).

Moreover, Worksport is promising the raise the performance bar when it comes to both automotive accessories and electric pickups with its clean energy power whose Alpha release is scheduled for this month. The SOLIS solar-powered tonneau and COR portable battery system promise off-grid clean power on the go, undoubtedly enhancing the electric pickup experience that Ford and other automakers are offering.

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Posted In: BYDDY F GM HMC NSANY TM TSLA WKSP