Benzinga - by Shanthi Rexaline, Benzinga Editor.
Tesla, Inc. (NASDAQ:TSLA) stock has been under pressure since the company released its second-quarter earnings report on July 19, as investors fear the aggressive price cuts will weigh on margin.
The price cuts and discounts, however, may have helped the company claw back some of the global market share it ceded to upstarts.
What Happened: Tesla's electric vehicle sales rose 83% year-over-year in the second quarter, outpacing the 50% overall global battery EV sales, data from market research firm Counterpoint showed.
Tesla's growth, however, trailed the 96% growth of Warren Buffett-backed BYD Company Ltd. (OTC:BYDDY) (BYDDF) and 111% growth of Geely Automobile Holdings Limited (OTC:GELYF).
Tesla's share of the global EV market increased from 16% in the second quarter of 2022 to 20% in the second quarter of 2023. The four percentage point increase is the biggest market expansion among the top seven companies.
BYD also saw its market share expand year-over-year from 12% to 15%, while Volkswagen AG's (OTC:VWAGY) share of the global BEV market slipped one percentage point to 8%.
The market share of companies categorized under others fell from 47% to 38%.
On Tesla's first-quarter earnings call in late April, CEO Elon Musk said Tesla can afford to sell vehicles at no profit as it has the opportunity to make tremendous economics in the future through autonomous software.
Just published: Q2 2023 Global EV Sales Grow 50%; Divergent Segment Trends Emerge Between China and Worldwide MarketsKey takeaways:
– EV sales were driven by strength in Western #Europe, nascent markets, and NAM
– #China's domestic market continued to dominate globally but… pic.twitter.com/pTn1Y5MVbF
— Counterpoint (@CounterPointTR) August 31, 2023
Chinese Market Slows: The overall year-over-growth was driven by strength in Western Europe and nascent markets, Counterpoint said. China, while maintaining a dominant share globally, saw its growth trail the other major markets.
Chinese automakers dominated the lower-tier sub-compact and compact vehicle segments, while the global companies increased their share in the higher-tier as well as mid- and full-sized categories, the firm said.
In premarket trading, Tesla stock edged up 0.18% to $257.37, according to Benzinga Pro data.
Read Next: WATCH: China’s ‘Tesla Village’ In Scenic Yunnan Mountains Turns EVs Into Rooms, Shops And More For Tourists
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