Tesla's quarterly deliveries break record
Tesla released record delivery numbers for the second quarter this Thursday (2), vastly exceeding Wall Street estimates, driven by a recovery in Europe. The result raises hopes that, in 2026, the electric vehicle manufacturer will be able to end a two-year sequence of annual declines.
Solid results from Tesla's core automotive business offer relief as CEO Elon Musk focuses on ambitions in the areas of autonomous driving and artificial intelligence - the main drivers of the company's $1.6 trillion market valuation.
Shares of the Austin, Texas-based company closed down more than 7%. Analysts and investors said optimism was already priced in, as shares had risen 12% at the start of the week.
Tesla's recovery in Europe has been helped by soaring fuel prices, government incentives for electric vehicles, faster electrification of corporate fleets and the waning consumer rejection of CEO Elon Musk seen last year.
"I believe the huge growth in Europe is the main driver for Tesla right now. Sales in the US still appear to be down - albeit less than the overall decline in the country's electric vehicle market - while China is seeing a little growth," noted Seth Goldstein, senior equity analyst at Morningstar.
However, demand in the US - Tesla's biggest market - remained under pressure following the withdrawal of tax credits for electric vehicles late last year. "We are cautiously optimistic about some growth this year," said Sam Fiorani, vice president at research firm AutoForecast Solutions.
The company delivered 480,126 vehicles in the April-June period, a record for the second quarter and an increase of about 25% year-over-year, beating analysts' average estimate of 402,776 vehicles, according to data from Visible Alpha.
Tesla produced 451,758 vehicles during the quarter. Deliveries exceeded production by more than 28,000 units, leading the company to reduce inventories accumulated during the first quarter.
Sales of electric vehicles manufactured by the company in China have increased this year, driven by production of the updated Model Y, despite intense competition from BYD and other local automakers.
The company said it will release quarterly results on July 22, after markets close.
Source: CNN