The electric vehicle industry continues to face challenges. American electric car giant Tesla reported a second consecutive quarter of declining profits, while General Motors also postponed its electric vehicle investment plans. On Wednesday (July 24th), the stock prices of major Chinese electric vehicle companies fell.
Tesla announced on Tuesday (July 23rd) that its automotive revenue in the second quarter decreased by 7% year-on-year, dropping from $21.27 billion in the same period last year to $19.9 billion, with a corresponding decrease in adjusted profit margins. Tesla’s stock price closed down by 2.04%. The company also stated that it plans to start production of new vehicles in the first half of 2025, including more affordable models.
On Wednesday morning, Tesla’s stock price fell by 11% to $219.58 at one point.
According to CNBC, the stock price of Xiaopeng Motors, listed in Hong Kong, fell by as much as 5.74% on Wednesday; NIO’s stock price fell by 5.26%; Li Auto’s stock price dropped by 3.99%, while BYD, Leapmotor, and SAIC Motor saw declines of 3.1%, 5.34%, and 1.02% respectively.
In the United States, Xiaopeng Motors and NIO saw their stock prices decline by 6.67% and 4.48% respectively on Tuesday.
With automakers like Tesla and General Motors scaling back or delaying their electric vehicle plans, the hype around electric cars has gradually waned.
During the earnings call on Tuesday, Tesla CEO Elon Musk announced that the company will hold a Robotaxi unveiling event on October 10th, after previously indicating it would be on August 8th.
Meanwhile, General Motors is once again slowing down its all-electric vehicle plans. The company announced on Tuesday that it would delay the start of production at an electric truck factory and also postpone Buick’s new electric vehicle plan.
General Motors explained that the investment delay is to ensure that the company does not get ahead of demand. CEO Mary Barra stated that they will introduce several new electric vehicle models in the coming months.
Investors are anxious about the slowdown in growth businesses. Despite General Motors’ solid financial performance, its stock price fell by 6.42% on Tuesday.
General Motors stated that it is working on restructuring its joint venture with SAIC Motor in China amidst ongoing losses.