Tesla auto deliveries beat expectations in second quarter

Tesla auto deliveries beat expectations in second quarter

DETROIT

Electric carmaker Tesla saw its shares surge after reporting auto deliveries that fell but topped analyst estimates.

Tesla said it delivered around 444,000 vehicles worldwide in the April-June period, exceeding consensus estimates compiled by FactSet and sending its share price up around 9.0 percent.

But deliveries were still 4.7 percent down from a year ago.

Of the total figure, 422,405 involved Model 3 and Model Y vehicles. Tesla gave no detailed breakdown of the other autos delivered.

During the same period it produced 410,831 vehicles, including 386,576 Model 3 and Model Y autos.

"This was a huge comeback performance from Tesla and (Elon) Musk with the Street expecting a clear miss this quarter with EV demand still choppy globally," said Wedbush analysts in a note.

They expect "the worst is in the rear-view mirror for Tesla," helped by a "mini rebound" in China along with price stabilization.

Tesla's robotaxi, to be unveiled on August 8, should also launch a new chapter for the automaker, the analysts noted.

Jessica Caldwell, head of insights at Edmunds, offered a more muted outlook on Musk's company.

"We've seen the automaker exhaust its bag of tricks by lowering prices and increasing incentives to spur demand without much success in the US market," she said.

She added that "times are tough for Tesla," noting that its sales techniques could have "long-term negative consequences."

Cox Automotive warned that volatility is expected in the second half of the year for the industry.

But vehicle supply is set to favor consumers, exerting "downward pressure on prices."

Charlie Chesbrough, senior economist at Cox Automotive, expects slower growth in the second half of 2024.

"Adding to the uncertainty in the market, many consumers likely believe things will be better, or at least more certain, after the November election, which adds to the hesitancy in buying," Chesbrough said.