You’re here (TSLA) The stock jumped about 5% in early trading Tuesday after the electric vehicle giant reported quarterly vehicle deliveries that beat Wall Street expectations.
The electric vehicle giant delivered 443,956 vehicles in the second quarter, compared with analysts’ consensus estimate of 439,302 deliveries, according to Bloomberg data.
“In the second quarter, we produced approximately 411,000 vehicles and delivered approximately 444,000 vehicles,” a statement said. company statement. Broken down by vehicle type, Tesla said it delivered 422,405 Model 3/Ys and 21,551 other models.
This total second-quarter delivery figure is higher than the 386,810 vehicles delivered worldwide in the first quarter, but lower than the approximately 466,140 vehicles delivered a year ago.
The company has faced stiff competition overseas from its Chinese counterparts amid a declining electric vehicle market. In an effort to cut costs, Tesla embarked on a plan to cut more than 10% of its global workforce earlier this year, in what some analysts saw as a signal hard times ahead.
At Tesla’s shareholder meeting last month, CEO Elon Musk confirmed that near-term demand and sales will still be somewhat challenging as the industry goes through a transition period.
“It’s hard to sled there” Musk said about the electric vehicle marketadding that competitors have also cut back on investment and production of electric vehicles.
Ahead of Monday’s delivery figures, Wells Fargo analysts noted that the company’s gross margin will likely be hurt in a crowded market.
“Stagnant EV adoption in the US and EU, with aggressive competition in China, leaves few immediate levers to increase volumes,” wrote Colin Langan and his team. The firm gave the stock an “underweight” rating with a $120 price target.
Tesla doesn’t disclose its Cybertruck sales, but investors have been able to get a sense of those deliveries based on recalls. Last month, Tesla announcement This is the fourth Cybertruck recall since the vehicle was released late last year. The recall notice listed 11,688 trucks as affected.
Ahead of the delivery figures, Tesla shares had gained more than 6% on Monday, while its Chinese counterpart Li Auto (LI) and Nio (NIO) and XPeng (XPEV) reported better than expected deliveries.
Tesla shares have gained more than 50% since their 52-week low on April 22. The stock is still down about 10% year to date.
Ines Ferre is a senior economics journalist for Yahoo Finance. Follow her on X at @ines_ferre.
