Tesla on Tuesday posted its second-quarter vehicle production and deliveries numbers for 2024, beating analysts expectations.<\/p>\n
Here are the key numbers:<\/p>\n
Total deliveries Q2 2024: 443,956 vehicles<\/p>\n
Total production Q2 2024: 410,831 vehicles<\/p>\n
Tesla\u2019s 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.<\/p>\n
Shares in the EV maker rose more than 8% in early trading on better-than-expected deliveries report.<\/p>\n
Before the report, Tesla shares were down 16% in 2024 even after rallying 6% on Monday.<\/p>\n
Deliveries are the closest approximation of sales disclosed by the electric vehicle maker. Tesla groups deliveries into two categories \u2014 Model 3 and Model Y vehicles, and all other vehicles \u2014 but doesn\u2019t report numbers for individual models or specific regions.<\/p>\n
Tesla\u2019s 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.<\/p>\n
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, \u201cprimarily due to lower average selling price.\u201d<\/p>\n
Sluggish sales were in part the result of temporary factory shutdowns initiated in response to an alleged arson attack at Tesla\u2019s factory in Germany, as well as shipping delays following Red Sea conflicts, Tesla said.<\/p>\n
But the sales drop also correlated with Tesla\u2019s 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\u2019s \u201cantics\u201d and \u201cpolitical rants.\u201d<\/p>\n
Tesla has offered a range of discounts and other incentives this year to try to spur sales.<\/p>\n
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.<\/p>\n
Colin Langan, an analyst at Wells Fargo, issued a report on Monday, saying the firm sees \u201cdeclining delivery growth driven by lower demand & diminished return on price cuts.\u201d He recommends selling Tesla shares.<\/p>\n
Wells Fargo expects automotive gross margins at Tesla, not including environmental credits, to fall given the \u201clikelihood of more price cuts & lower volumes\u201d as the year continues.<\/p>\n
Investor focus will now shift to Tesla\u2019s 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 \u201cCyberCab.\u201d<\/p>\n<\/p>\n
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