Tesla Stock Surges Over 10% Following Strong Q2 Vehicle Deliveries

by Yuki

Tesla’s stock (TSLA) surged more than 10% on Tuesday following the company’s announcement of quarterly vehicle deliveries that surpassed Wall Street expectations.

The electric vehicle giant delivered 443,956 vehicles during the second quarter, exceeding analysts’ consensus estimate of 439,302.

In a statement, Tesla reported production of approximately 411,000 vehicles and delivery of approximately 444,000 vehicles in the second quarter. Of these, 422,405 were Model 3/Y vehicles, with the remaining 21,551 comprising other models.

While the second quarter delivery total marked an increase from the 386,810 vehicles delivered globally in the first quarter, it fell short of the approximately 466,140 vehicles delivered in the same period last year.

Despite the year-over-year decline in deliveries, analysts noted positive signs suggesting resilience in the EV industry, buoying sentiment towards Tesla shares.

“We continue to see scope for improving sentiment in Tesla shares as well as broader EV sentiment as compared with the negative sentiment we have seen over the past ~6 months,” commented Citi analysts on Tuesday.

Looking ahead, analysts are keenly awaiting Tesla’s Q2 auto gross margins report on July 23 and any updates on future product launches to gauge market performance.

Tesla has faced competitive pressures from Chinese counterparts in the EV market, prompting cost-cutting measures earlier this year, including a workforce reduction.

During Tesla’s recent shareholder meeting, CEO Elon Musk acknowledged challenges in near-term demand and sales amid industry transitions. “It’s tough sledding out there,” Musk remarked, noting reduced investments and production among competitors.

Ahead of the delivery announcement, Tesla shares had already gained over 6% on Monday, spurred by positive delivery reports from Chinese peers Li Auto (LI), Nio (NIO), and XPeng (XPEV).

Since reaching a 52-week low on April 22, Tesla shares have surged more than 55%, although they remain down nearly 7% year-to-date.

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