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Tesla Shares Decline
On Tuesday, Tesla (NASDAQ: TSLA) saw its shares dip by 3.6% as of 1:15 p.m. ET, amid a broader market decline that included the NASDAQ Composite index falling 3.7%. The drop is partly attributed to increased competition in the electric vehicle (EV) market.
Competitor Emerges
BYD, backed by Warren Buffett, sold 641,350 “new energy” vehicles in the first half of 2022, surpassing Tesla’s 564,743 sales. Barclays analyst Jiong Shao indicated that BYD is likely to expand further into the U.S. market, intensifying competition for Tesla.
Future Projections
Tesla is working to ramp up production at its new factories in Texas and Germany, expecting a 50% increase in EV production annually for several years. Despite growth prospects, it maintains a high forward price-to-earnings (P/E) ratio exceeding 100, signifying potential concerns over competition.
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