Connect with us

Hi, what are you looking for?


Tesla shares rise on better-than-expected Q2 deliveries report

Tesla on Tuesday posted its second-quarter vehicle production and deliveries numbers for 2024, beating analysts expectations.

Here are the key numbers:

Total deliveries Q2 2024: 443,956 vehicles

Total production Q2 2024: 410,831 vehicles

Tesla’s numbers beat Wall Street estimates. Analysts expected Tesla deliveries to hit 439,000 in the three months ending June 30, according to a consensus of estimates compiled by FactSet StreetAccount. The total number of deliveries in the second quarter was down 4.8% from 466,140 a year earlier but 14.8% higher than the first quarter of 2024.

Shares in the EV maker rose more than 8% in early trading on better-than-expected deliveries report.

Before the report, Tesla shares were down 16% in 2024 even after rallying 6% on Monday.

Deliveries are the closest approximation of sales disclosed by the electric vehicle maker. Tesla groups deliveries into two categories — Model 3 and Model Y vehicles, and all other vehicles — but doesn’t report numbers for individual models or specific regions.

Tesla’s current lineup includes its popular Model Y crossover utility vehicles, Model 3 sedans and the new Cybertruck pickups, as well as the Model X SUV and flagship Model S sedan.

In April, Tesla reported a drop of 8.5% in first-quarter deliveries to 386,810, the first annual decline since 2020. Weeks later the company reported a 13% decline in year-over-year revenue for the quarter, “primarily due to lower average selling price.”

Sluggish sales were in part the result of temporary factory shutdowns initiated in response to an alleged arson attack at Tesla’s factory in Germany, as well as shipping delays following Red Sea conflicts, Tesla said.

But the sales drop also correlated with Tesla’s aging lineup of vehicles, increased competition from other EV makers especially in China, and brand erosion that one recent survey attributed partly to CEO Elon Musk’s “antics” and “political rants.”

Tesla has offered a range of discounts and other incentives this year to try to spur sales.

In China, Tesla is currently offering a zero-interest loan as an incentive to get customers to buy a Model 3 or Model Y by July 31. According to its 2023 annual filing, Tesla generated about $21.75 billion of its overall revenue from China, representing 22.5% of total sales.

Colin Langan, an analyst at Wells Fargo, issued a report on Monday, saying the firm sees “declining delivery growth driven by lower demand & diminished return on price cuts.” He recommends selling Tesla shares.

Wells Fargo expects automotive gross margins at Tesla, not including environmental credits, to fall given the “likelihood of more price cuts & lower volumes” as the year continues.

Investor focus will now shift to Tesla’s second-quarter earnings report later this month and a separate marketing event planned for August when the company intends to reveal its design for a dedicated robotaxi or “CyberCab.”

This post appeared first on NBC NEWS
Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Former First Lady Melania Trump will ‘most certainly’ have an influence on who her husband selects as a running mate for the 2024 presidential...


    Former U.N. ambassador Nikki Haley posted an online tribute on Sunday to her father, who she said died on Father’s Day. “This morning I...

    Latest News

    It’s hard to tell who needs who more.Former President Trump or House Speaker Mike Johnson, R-La.It’s too early to say if Mr. Trump will...


    Maximizing Profits in Forex with the XMaster Formula Indicator Key Takeaways: XMaster Formula Indicator is a reliable and accurate tool for Forex traders to...