Tesla’s second-quarter 2024 vehicle production and delivery numbers exceeded analyst expectations, causing the company’s stock to jump 8.8% to $228.29 in morning trading on Tuesday.
The electric vehicle maker reported total deliveries of 443,956 vehicles for Q2 2024, surpassing the analyst consensus estimate of 439,000. While this figure is a 4.8% decrease from the 466,140 deliveries in the same quarter last year, it’s still a 14.8% increase from the first quarter of 2024.
Tesla’s total production for Q2 2024 stood at 410,831 vehicles, grouping its deliveries into two categories: Model 3/Y vehicles and other Models. The positive delivery numbers come as a relief for Tesla, which had reported an 8.5% drop in first-quarter deliveries earlier this year, marking its first annual decline since 2020. The company had attributed the sluggish sales to temporary factory shutdowns, shipping delays, and increased competition, particularly in China.
To boost sales, the company has been offering various incentives, including a zero-interest loan in China for Model 3 and Model Y purchases made by July 31. China represented 22.5% of Tesla’s total sales in 2023, generating about $21.75 billion in revenue.
Despite the strong Q2 numbers, some analysts remain cautious. Colin Langan of Wells Fargo recommends selling Tesla shares, citing “declining delivery growth driven by lower demand & diminished return on price cuts.”
Investors will now turn their attention to Tesla’s upcoming second-quarter earnings report and a marketing event planned for August, where the company is expected to reveal its design for a dedicated robotaxi or “CyberCab.”
