Tesla stock surges 10% as quarterly vehicle deliveries beat Wall Street estimates

Tesla stock (TSLA) jumped greater than 10% on Tuesday after the electrical vehicle giant reported quarterly vehicle deliveries that beat Wall Street expectations.

The EV maker delivered 443,956 vehicles through the second quarter, versus an analyst consensus estimate of 439,302, per Bloomberg data.

“Within the second quarter, we produced roughly 411,000 vehicles and delivered roughly 444,000 vehicles,” read a company statement. Broken down by automobile type, Tesla said it delivered 422,405 models 3/Y and 21,551 other models.

That second quarter total delivery figure is higher than the 386,810 vehicles globally delivered in the primary quarter but lower than the approximate 466,140 delivered a 12 months ago.

Despite the year-over-year drop in deliveries, some analysts pointed to signs the EV industry could also be holding up higher than expected.

“We proceed to see scope for improving sentiment in Tesla shares in addition to broader EV sentiment as compared with the negative sentiment we’ve got seen over the past ~6 months,” wrote Citi analysts on Tuesday.

“From here, the main target will turn to Tesla’s Q2 auto gross margins to gauge the worth vs. cost equation (Tesla reports July 23), in addition to any updates on future product launches,” said the note.

Tesla has faced stiff competition abroad from its Chinese counterparts amid a waning marketplace for EVs. In an effort to scale back costs, Tesla launched into a plan to chop greater than 10% of its global staff earlier this 12 months in what some analysts saw as a signal of tough times ahead.

During Tesla’s shareholder meeting last month CEO Elon Musk confirmed that near-term demand and sales will still struggle somewhat because the industry goes through a transitionary period.

“It’s tough sledding on the market,” Musk said with regard to the EV market, adding that competitors have also been scaling back their investments and production of electrical vehicles.

Ahead of the delivery numbers on Monday, Wells Fargo analysts noted the corporate’s gross margin will likely be impacted amid a crowded market.

During Tesla’s shareholder meeting last month CEO Elon Musk confirmed that near-term demand and sales will still struggle. (AP Photo/Kirsty Wigglesworth, Pool, File) (ASSOCIATED PRESS)

“Flattening EV adoption within the US and EU, with aggressive competition in China leave little immediate levers to tug to extend volumes,” wrote Colin Langan and his team. The firm has an Underweight rating on the stock with a $120 price goal.

Tesla doesn’t break out its sales of the Cybertruck, but investors have been in a position to pick up on hints about those deliveries based on recalls. Last month Tesla announced its fourth Cybertruck recall for the reason that vehicle’s release late last 12 months. Inside the recall notice, 11,688 trucks seemed to be affected.

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

Tesla shares have rallied greater than 55% since their 52-week low on April 22. The stock is down almost 7% 12 months up to now.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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