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Tesla’s stock price soared 10% on Tuesday after the company reported better-than-expected vehicle production and delivery numbers for the second quarter.
Key figures for Q2 2024:
- Total Deliveries: 443,956 vehicles
- Total Production: 410,831 vehicles
Analysts had anticipated 439,000 deliveries for the quarter, according to FactSet StreetAccount estimates. Although deliveries were down 4.8% from 466,140 vehicles a year earlier, they rose 14.8% from the first quarter.
The stock closed at $231.26 on Tuesday, marking a 7% decline for the year to date.
Tesla reports delivery numbers in broad categories: Model 3 and Model Y vehicles, and other models, without breaking down figures by individual model or region. The company’s lineup includes the Model Y crossover, Model 3 sedan, new Cybertruck pickups, Model X SUV, and flagship Model S sedan.
In April, Tesla reported an 8.5% drop in first-quarter deliveries to 386,810, marking its first annual decline since 2020. This was followed by a 13% decline in year-over-year revenue, attributed to a lower average selling price.
The decrease in sales was partly due to temporary factory shutdowns related to an alleged arson attack at Tesla’s German factory and shipping delays from Red Sea conflicts. Additionally, the aging vehicle lineup, increased competition from other EV makers—especially in China—and brand erosion linked to CEO Elon Musk’s public behavior contributed to the sales slump.
Tesla has implemented various discounts and incentives this year to boost sales. In China, for instance, the company is offering a zero-interest loan for Model 3 and Model Y purchases made by July 31. Tesla reported $21.75 billion in revenue from China in 2023, representing 22.5% of total sales.
Analysts like Colin Langan at Wells Fargo have expressed concerns about declining delivery growth and diminishing returns from price cuts, recommending a sell on Tesla shares. Langan anticipates that automotive gross margins, excluding environmental credits, may decline due to more price cuts and lower volumes.
Investor attention will now turn to Tesla’s upcoming second-quarter earnings report and a planned marketing event in August, where the company is expected to unveil its design for a dedicated robotaxi or “CyberCab.”