Tesla shares jumped 10% Tuesday after the company posted second-quarter vehicle production and delivery numbers that beat analysts' expectations.
Here are the key figures:
Total deliveries for Q2 2024: 443,956 vehicles
Total production for Q2 2024: 410,831 vehicles
Analysts had expected Tesla to deliver 439,000 units in the three months ended June 30, according to a consensus estimate compiled by FactSet StreetAccount. Total shipments in the second quarter were down 4.8% from 466,140 units a year earlier, but up 14.8% from the first quarter.
The stock closed Tuesday at $231.26 and is expected to decline about 7% in 2024.
Deliveries are the closest estimate to the electric carmaker’s reported sales. Tesla breaks down 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 the popular Model Y SUV, Model 3 sedan, new Cybertruck pickup, as well as the Model X SUV and flagship Model S sedan.
In April, Tesla reported an 8.5% decline in first-quarter deliveries to 386,810, the first annual decline since 2020. Weeks later, the company reported a 13% year-over-year decline in revenue for the quarter, “primarily due to lower average selling price.”
Tesla said the slowdown in sales was partly a result of temporary factory shutdowns that began in response to an alleged arson attack at a Tesla plant in Germany, as well as shipping delays following the Red Sea conflicts.
New Tesla cars are shown in front of the Tilburg factory and delivery center in Tilburg.
Sebastian Gollnow | Image Alliance | Getty Images
But declining sales are also linked to Tesla's aging vehicle lineup, increased competition from other electric-vehicle makers, particularly in China, and brand erosion that one recent survey attributed in part to CEO Elon Musk's “actions” and “political rhetoric.”
Tesla has offered a range of discounts and other incentives this year in an attempt to stimulate sales.
In China, Tesla is currently offering an interest-free loan as an incentive to encourage customers to buy a Model 3 or Model Y by July 31. According to its 2023 annual report, Tesla generated about $21.75 billion of its total revenue from China, accounting for 22.5% of total sales.
Wells Fargo analyst Colin Langan issued a report on Monday saying the company expects “decelerating delivery growth due to lower demand and lower returns on price cuts.” He recommended selling Tesla shares.
Wells Fargo expects Tesla's gross profit margins for its auto business, which do not include environmental credits, to decline due to “the potential for further price cuts and lower volumes” as the year continues.
Investors' focus will now turn to Tesla's second-quarter earnings report later this month and a separate marketing event planned for August when the company intends to unveil its design for a custom robotic taxi, or “CyberCab.”
—CNBC's Jordan Novett contributed to this report.
