Tesla (NASDAQ:TSLA) stockholders are bracing for quarterly delivery figures due tomorrow, April 2. TSLA stock opened in the red this morning.
The expectation is that the company produced 425,000 cars worldwide. But a March 29 tweet from the company, saying it produced its 6 millionth car could indicate production as high as 450,000.
TSLA stock was trading at $174 per share early on April 1, a market capitalization of about $550 billion. The stock has lost 29% of its value in 2024. Its all-time high is near $300 per share.
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Tesla is worth almost twice as much as Toyota Motor (NYSE:TM), the second most valuable car company, because of its growth and profitability.
However, Tesla produced 423,000 cars in the first quarter of 2023. Tesla hasn’t dropped production figures since the pandemic. Total production of 430,000 or higher would indicate continued growth. Most analysts have production estimates below that figure.
TSLA stock has been under pressure since China’s BYD (OTCMKTS:BYDDF) overtook it on deliveries in the third quarter of 2023. Tesla’s peak production came in 2023’s fourth quarter when it made 484,500 cars.
Even if Tesla hits production estimates, analysts will still worry about profits. Tesla recently began advertising for the first time, a move CEO Elon Musk reportedly hates.
Tesla launched a price war in China a year ago, but now it’s on the defensive there. A recent price hike on the Model Y was followed by several Chinese companies offering price cuts.
A new entrant in the Chinese market is phone maker Xiaomi (OTCMKTS:XIACY), which says it got 120,000 orders for its SU7 sedan in 36 hours. At its launch event, founder Lei Jun said, “Isn’t it time for Tesla Model 3 users to upgrade?”
TSLA Stock: What Happens Next?
China’s car companies are winning their home market, and they’re coming soon for the rest of the world. Tesla needs to refresh its product line to compete. The CyberTruck alone won’t do that.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
