Tesla reported a decline in sales for the second consecutive quarter, marking the first time in the company's history that such a trend has occurred. Sales for the quarter totaled nearly 444,000 cars, reflecting a 5% decrease from the previous year. This follows an 8.5% drop in the first quarter. The dip in sales highlights the intensifying competition in the electric vehicle market, where overall sales are growing but at a slower pace than anticipated.
Despite the decline, Tesla's sales surpassed analysts' expectations of 436,000 cars and allowed the company to maintain its lead in global sales of purely electric vehicles, edging out Chinese automaker BYD. BYD, however, reported a 21% increase in EV sales compared to the previous year, narrowing the gap with Tesla. The better-than-expected sales results boosted Tesla's shares by over 9% in midday trading.
