Tesla Isn’t Feeling The Effects Of A Slumping Auto Market
The second-quarter of 2019 wasn't kind to most automobile manufacturers with slumping sales appearing to point directly at a global slowdown in automobile sales. Ford, Fiat Chrysler, and GM all experienced declining numbers with several foreign competitors showing a similar decline.
One company to skirt the slowdown is Tesla. The company announced on Wednesday that new production and delivery records were set in Q2. The company delivered 95,200 cars for a 51% overall increase compared to the prior three months. In comparison, Ford sales were down 4.1% even as pickup sales jumped by 7.5% to 324,000 units sold. Ford experienced an 8.6% decrease in SUV sales and a massive 21.4% decrease in passenger car vehicle transactions.
GM didn't fare much better with a 1.5% decrease in sales led by a poor cycle for its Chevy Malibu and Cruze models which the company discontinued in early 2019. Sales of the company's flagship Silverado were cut by 16%.
Chrysler experienced a pretty big win with a 56% jump in Dodge Ram pickup sales, however, those sales were offset by an 8% decrease in Jeep sales and a 27% decrease in minivan sales.
It's not just American automakers who are suffering, Nissan sales were down 15% followed by Toyota with a 3.5% decrease. Manufacturer Hyundai watched sales rise by 1.5% in a rare Q2 moment for the non-electric US vehicle market.
The newest figures are great news for Tesla. In April 2019, the company announced its biggest drop in delivered vehicles in company history. Tesla delivered 63,000 vehicles in Q1 2019, a 31% decrease compared to the final three months of 2018.
Many investors have now issued a "buy" rating for Tesla with the belief that its Model 3 will remain a fast selling electric vehicle among mid-market buyers.
