As a global equities fund, Minotaur Capital continues to provide critical market insights on major global equity developments. Our latest analysis, featured in the Australian Financial Review, examines Tesla's unprecedented brand deterioration and its struggling performance in China's competitive electric vehicle market.
Our portfolio management team has been closely monitoring Tesla's dramatic decline, with shipments from the Shanghai factory falling 49% in February to just 30,688 vehicles - the lowest since the pandemic. This collapse represents a significant shift in global equities markets, particularly affecting technology and automotive sectors that many investment strategies have traditionally favoured.
Thomas Rice, our portfolio manager, captured the severity of the situation:
"Aside from witnessing the greatest brand destruction of our times thanks to Elon Musk, Tesla is also losing the innovation race," he said.
His analysis highlights how Chinese competitors like BYD are outpacing Tesla in both pricing and technology, with BYD's market share approaching 15% while Tesla sits below 5%.
Our investment approach has long emphasised the importance of brand value and competitive positioning in global equities. Tesla's China crisis exemplifies why fund managers must carefully evaluate both technological capabilities and leadership risks when constructing portfolios. The company that once pioneered the EV revolution now finds itself playing catch-up in the world's most important EV market.
To read the article, click the link below.