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Tesla reported strong vehicle delivery growth and its shares soared more than 10%

Tesla reported strong vehicle delivery growth and its shares soared more than 10%
Tesla reported strong vehicle delivery growth and its shares soared more than 10%

The electric vehicle maker delivered 443,956 vehicles during the second quarter, compared with a consensus analyst estimate of 439,302 deliveries.

Tesla shares are up more than 50% from their 52-week low on April 22. The stock is still down 10% year to date.

Reuters

The Tesla (TSLA) stock went up 10.2% on Tuesday after the electric vehicle giant reported quarterly vehicle deliveries that beat expectations Wall Street.

The electric vehicle manufacturer delivered 443,956 vehicles during the second quarter, compared with a consensus estimate of analysts of 439,302 deliveries, according to Bloomberg data.

“In the second quarter, we produced approximately 411,000 vehicles and delivered approximately 444,000 vehicles,” the company said in a statement. Broken down by car type, Tesla said it delivered 422,405 Model 3/Y and 21,551 other models.

That second-quarter delivery total is up from 386,810 vehicles delivered globally in the first quarter but down from about 466,140 delivered a year ago. The company has faced stiff competition overseas from Chinese counterparts amid a declining market for electric vehicles. In an effort to cut costs, Tesla embarked on a plan to cut more than 10% of its global staff earlier this year, which some analysts saw as a sign of tough times ahead.

The words of CEO Elon Musk

During Tesla’s shareholder meeting last month, CEO Elon Musk confirmed that short-term demand and sales will still struggle a bit as the industry goes through a transition period.

“It’s hard to make progress,” Musk said of the electric vehicle market, adding that competitors have also been cutting back on EV investments and production.

Ahead of Monday’s delivery numbers, Wells Fargo analysts noted that the company’s gross margin will likely take a hit amid a saturated market. “EV adoption is plateauing in the US and EU, with aggressive competition in China, leaving few immediate levers to grow volumes,” Colin Langan and his team wrote. The firm has an Underweight rating on the stock with a $120 price target.

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Elon Musk confirmed that short-term demand and sales will still struggle a bit as the industry goes through a transition period.

Elon Musk confirmed that short-term demand and sales will still struggle a bit as the industry goes through a transition period.

Reuters

Tesla doesn’t break out its Cybertruck sales, but investors have been able to pick up clues about those deliveries based on the recalls. Last month, Tesla announced its fourth Cybertruck recall since the vehicle’s launch late last year. Within the recall notice, 11,688 trucks were affected.

Ahead of the deliveries report, Tesla shares rose more than 6% on Monday as Chinese peers Li Auto (LI), Nio (NIO) and XPeng (XPEV) all reported better-than-expected deliveries.

Tesla shares are up more than 50% from their 52-week low on April 22. The stock is still down 10% year to date.

Source: Ambito

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