Analysts expected 439,000 deliveries for the quarter ending June 30, according to FactSet StreetAccount estimates. Although deliveries fell 4.8% from 466,140 a year ago, they increased 14.8% from the first quarter.
Following this report, Tesla shares soared over 9% in midday trading on Tuesday. Before the report, Tesla shares had declined by 16% in 2024.
Deliveries are the closest metric to sales for Tesla, which groups its deliveries into two categories: Model 3 and Model Y vehicles, and all other vehicles. However, Tesla does not provide specific numbers for individual models or regions.
Tesla’s current lineup includes the popular Model Y crossover utility vehicles, Model 3 sedans, the new Cybertruck pickups, the Model X SUV, and the flagship Model S sedan.
In April, Tesla reported an 8.5% decline in first-quarter deliveries to 386,810, marking the first annual decline since 2020. Shortly after, the company announced a 13% year-over-year revenue drop for the quarter, primarily due to lower average selling prices.
The decline in sales was partially attributed to temporary factory shutdowns due to an alleged arson attack at Tesla’s German factory and shipping delays from Red Sea conflicts. Additionally, Tesla faced challenges from an aging vehicle lineup, increased competition from other EV makers, especially in China, and brand erosion attributed to CEO Elon Musk’s controversial statements and political comments.
To boost sales, Tesla has offered various discounts and incentives this year. In China, Tesla is currently providing a zero-interest loan for customers purchasing a Model 3 or Model Y by July 31. Tesla’s 2023 annual filing showed that China generated approximately $21.75 billion in revenue, accounting for 22.5% of total sales.
Wells Fargo analyst Colin Langan issued a report on Monday, highlighting “declining delivery growth driven by lower demand & diminished return on price cuts” and recommending selling Tesla shares. Wells Fargo anticipates a decline in Tesla’s automotive gross margins, excluding environmental credits, due to potential further price cuts and lower volumes.
Investors will now turn their attention to Tesla’s second-quarter earnings report later this month and a marketing event planned for August, where the company plans to unveil its design for a dedicated robotaxi, known as the “CyberCab.”
