Tesla said on Tuesday, July 2, that it had delivered 444,000 electric vehicles to clients in the second quarter. Despite a 5% year-over-year decline, this was an uptick of 15% from the first quarter and more than the number predicted by Wall Street analysts.
Surpassing Expectations
After reporting better-than-expected results for the second quarter, Tesla saw a 10% spike in share price, according to CNBC.
Reportedly, there were 410,831 cars produced and 443,956 deliveries. However, based on a consensus of forecasts, analysts were expecting Tesla deliveries to reach only 439,000 in the three months ended June 30.
The stock has lost over 7% of its value in 2024, closing at $231.26 on Tuesday.
The EV maker uses deliveries as its closest estimate of sales. Tesla does not provide figures for particular models or areas, but it does classify deliveries into two broad categories: Model 3 and Model Y automobiles and all other vehicles.
Popular models in Tesla's current portfolio include the Model Y SUV, Model 3 cars, Cybertruck pickups, Model X SUV, and Model S sedan, which serves as the company's flagship.
The EV Market
A declining EV market has been a problem for Tesla. Although sales of electric cars are currently outpacing those of gasoline-powered vehicles, automakers like Tesla have been offering discounts and incentives to entice customers beyond the early adopters of EVs in the last year.
Dan Ives, an analyst at Wedbush Securities, said Tuesday's sales figures represent a "comeback performance" from Tesla after a catastrophic first quarter, as reported by the Washington Post.
He went on to say that even the most optimistic investors were taken aback by Tesla's second-quarter sales since everyone was expecting the company to fall short of Wall Street analysts' forecast. Those keeping tabs on the company were considering how high borrowing rates and a lack of enthusiasm for EVs might affect sales.
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