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Tesla, Inc. (TSLA) is facing a declining market share in the increasingly competitive electric vehicle (EV) space, with a 13% year-over-year drop in deliveries in Q1 2025 and a similar decline in Q2, bringing total deliveries to 336,000 in Q1 and 606,993 in Q2 for competitor BYD Co. Ltd. (BYDDY). The company’s revenue has also seen its sharpest quarterly decline in over a decade.
Tesla has unveiled its Master Plan Part IV, focusing on AI, robotics, autonomous driving, and energy, as it aims to reshape its growth strategy. However, skepticism surrounds the feasibility of these ambitious plans, particularly with Tesla currently lagging behind industry leader Alphabet’s Waymo. Musk’s prior predictions have raised concerns among investors as market estimates for 2025 suggest a 5% contraction in sales and a 31.4% decline in earnings per share.
Year-to-date, Tesla shares have decreased by 16%, indicating underperformance in the market and leaving the company’s valuation under scrutiny with a price/sales ratio of 10.48, higher than the industry average. The company’s current Zacks Rank is #4 (Sell).
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