Tesla drops 1.50% ahead of the vehicle delivery report 📃

Tesla (TSLA.US) is down over 1.50% ahead of the US cash session opening. Investors are anticipating Tesla's quarterly vehicle delivery report for the April-June period, which is expected to be released today.

Despite yesterday's gains following better monthly reports from Chinese competitors, today's equally strong report from BYD (the largest Chinese competitor) raises valid concerns among investors about increasing competition in this market. Tesla is expected to report a 6% drop in vehicle deliveries for the April-June quarter. This will be the first time the American company posts two consecutive quarters of decline, as it struggles with significant competition in China and slow demand due to the lack of affordable new models. If today's results are worse than expected, Tesla may deliver fewer vehicles than BYD. Barclays predicts an 11% drop in second-quarter deliveries, the largest in Tesla's history.

BYD Deliveries

In the second quarter, China's BYD recorded a 21% increase in electric vehicle sales, reaching 426,039 units, about 12,000 fewer than Tesla's estimated deliveries for the same period. This growth indicates that BYD is closing the gap with Tesla. BYD's consistent growth contrasts with Tesla's expected 6% drop in vehicle deliveries for the April-June quarter, marking the first time Tesla is set to report two consecutive quarters of decline.

Source: xStation 5