Rumors of falling electric vehicle sales appear to be exaggerated. At least that’s the conclusion investors have reached after You’re here (NASDAQ: TSLA) today released its second-quarter electric vehicle delivery figures.
After the electric vehicle leader reported higher-than-expected vehicle deliveries, Tesla shares led the S&P 500 Tesla shares rose for the second day in a row. As of 10:55 a.m. ET, the stock was up 8.6% after jumping more than 6% yesterday. Tesla shares benefited from its report yesterday after several Chinese electric vehicle makers report strong sales data. But there was even more to enjoy than most expected from Tesla’s update today.
It’s not just about electric vehicle sales
Tesla delivered nearly 444,000 electric vehicles in the second quarter. Investors lowered their expectations throughout the period, resulting in a consensus estimate of 439,000 units, according to Set of factsThe reported figure is almost 5% lower than the same period last year, but the report does have some positive aspects that investors could focus on.
In addition to beating estimates, the second quarter was marked by a decline in inventories, with deliveries exceeding 410,831 electric vehicles produced. The accumulation of inventories due to a perceived drop in demand was a fear that helped fuel demand. Tesla stock price The stock fell earlier this year. But it has now rebounded with a gain of nearly 30% in the last month alone.
The good news in today’s report doesn’t stop there. The company saw a record 9.4 GWh (gigawatt hours) of energy storage products deployed during the three-month period. That’s more than double the previous record of 4.1 GWh recorded in the first quarter.
There is renewed interest in energy storage products to smooth the electricity supply as renewable energy sources are installed for applications such as the growing construction of data centers.
The increase in deployments bodes well for a new revenue stream for Tesla. Investors will be looking for more updates from the company when it reports its full second-quarter financial results on July 23 and provides an update on its self-driving technology on August 8.
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Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends FactSet Research Systems and Tesla. The Motley Fool has a disclosure policy.
Why Tesla Stock Continued to Rise Today was originally published by The Motley Fool
