The Rise of Tesla: Q2 Deliveries Beat Estimates

Key Takeaways:

• Tesla shares surged Tuesday morning after reporting second-quarter production and delivery numbers.
• The roughly 444,000 vehicles Tesla delivered were below last year’s mark, but still better than analysts expected.
• Tesla stock ended the second quarter on a positive note, as the EV maker looks to reverse the losses it suffered in the first half of 2024.

Tesla (TSLA) shares saw a significant surge on Tuesday following the release of second-quarter production and delivery numbers. While the figures for the electric vehicle giant fell year-over-year, they managed to surpass analysts’ expectations.

Production and Deliveries Figures Lower Than Last Year, But Above Estimates

In the second quarter, Tesla delivered 443,956 vehicles and produced 410,831 vehicles. These numbers were lower compared to the same period last year when Tesla produced 479,700 vehicles and delivered 466,140. However, the reported deliveries still managed to exceed analysts’ consensus of about 439,000.

After facing challenges in the first half of 2024, Tesla’s stock started to show signs of recovery last week amid optimism surrounding its Q2 numbers. The positive delivery figures for several of Tesla’s Chinese competitors also contributed to the upward trend.

Analysts at Wedbush expressed confidence in Tesla’s future, stating that they believe “the worst is in the rearview mirror for Tesla.” They also highlighted the upcoming “robotaxi” event scheduled for next month, where Tesla plans to unveil its fully autonomous taxi to compete with industry players like Alphabet’s Waymo.

Wedbush analysts emphasized that Tesla is more than just a traditional car company, positioning it as an AI and robotics play. The anticipation surrounding the August 8th event is seen as a crucial moment for the Tesla story.

Following the positive news, Tesla shares surged more than 8% to $227.50 by 10:23 a.m. ET on Tuesday, reaching their highest point since January. Despite this increase, Tesla stock is still down more than 8% year-to-date.

Overall, Tesla’s second-quarter performance has instilled confidence in investors and analysts alike, signaling a potential turnaround for the company as it navigates through a challenging market landscape.

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