Tesla’s stock experienced a nearly 3% increase early Wednesday following the announcement of its second-quarter electric vehicle deliveries, which, while falling short of Wall Street’s lowest expectations, still surpassed production capabilities. The company reported delivering 384,122 electric vehicles (EVs) in the second quarter, just below the anticipated 389,407 calculated by analysts according to Bloomberg. This figure represents a 13% decrease compared to the previous year, although it is an improvement over the 336,681 vehicles delivered in the first quarter.
In terms of production, Tesla manufactured 410,244 vehicles across its global plants during the same period, exceeding analyst expectations of 400,082 and aligning closely with the 410,843 vehicles produced a year ago. The company also noted the deployment of 9.6 gigawatt-hours (GWh) of energy storage products, a slight increase from 9.4 GWh in the same quarter of the previous year.
Shares of Tesla received a brief boost early Wednesday after revealing that sales in China saw a rebound for the first time in nine months. However, the company’s stock has already seen a decline of more than 25% this year, partly attributed to CEO Elon Musk’s controversial political engagements that have affected both his reputation and that of the company. Furthermore, Tesla faces escalating competition from emerging Chinese EV manufacturers such as BYD and Xiaomi.
Sales data on Tuesday revealed a continued drop in Tesla’s sales in Scandinavia—its sixth consecutive month of decline in both Sweden and Denmark. In Europe, sales have also diminished for five months straight.
Investors remain hopeful largely due to Musk’s ambitious plans for a future with robotaxis, although this optimism has faced setbacks. Tesla rolled out its robotaxis in Austin, Texas, on June 23, which initially spurred an 8% surge in shares. However, the stock subsequently fell after reports surfaced of the autonomous vehicles breaking traffic laws, drawing scrutiny from the National Highway Traffic Safety Administration. While Musk envisions “millions” of robotaxis on the road, he has a track record of making lofty claims that have not yet reached fruition.
Tesla’s recent activities have not been without tension; a renewed social media feud between Musk and former President Trump resulted in a 5% drop in stock value on Tuesday, following Trump’s threats to revoke subsidies for Tesla and SpaceX due to Musk’s criticisms of Trump’s tax and spending policies.
Despite the challenges facing Tesla, its ability to increase production and the optimistic outlook for the electric vehicle future, particularly with potential advancements in autonomous technology, keep investors hopeful about the company’s trajectory.