Tesla on Tuesday Posted the production and delivery figures for vehicles in the second quarter of 2024.
Here are the key figures:
Total deliveries Q2 2024: 443,956 vehicles
Total production Q2 2024: 410,831 vehicles
Tesla's numbers topped Wall Street estimates. Analysts had expected Tesla deliveries to reach 439,000 in the three months ending June 30, according to a consensus of estimates compiled by FactSet StreetAccount. Total deliveries in the second quarter were down 4.8% from 466,140 a year earlier, but up 14.8% from the first quarter of 2024.
Tesla shares rose more than 6% in premarket trading on better-than-expected deliveries. Before the report, Tesla shares fell as much as 16% in 2024, even after a 6% rally on Monday.
Deliveries are the best approximation of sales reported by the electric vehicle maker. Tesla groups deliveries into two categories — Model 3 and Model Y vehicles, and all other vehicles — but does not report numbers for individual models or specific regions.
Tesla's current lineup includes the popular Model Y crossover SUVs, Model 3 sedans and the new Cybertruck pickup trucks, as well as the Model X SUV and flagship Model S sedan.
In April, Tesla reported an 8.5% decline in first-quarter deliveries to 386,810, the first annual decline since 2020. Weeks later, the company reported a 13% decline in year-over-year revenue for the quarter, “primarily due to a lower average selling price.”
The disappointing sales figures were partly due to temporary factory closures in response to an alleged arson attack at Tesla's factory in Germany, as well as shipment delays due to conflict in the Red Sea, Tesla said.
New Tesla vehicles on display in front of the Tilburg Factory and Delivery Center in Tilburg.
Sebastian Gollnow | Photo Alliance | Getty Images
But the sales decline was also linked to Tesla's aging vehicle lineup, increased competition from other EV manufacturers, particularly in China, and brand erosion. a recent study partly attributed to the “antics” and “political tirades” of CEO Elon Musk.
Tesla has offered a series of discounts and other incentives this year to boost sales.
In China, Tesla currently offers a zero interest loan as an incentive to encourage customers to purchase a Model 3 or Model Y before July 31. According to the annual submitTesla generated approximately $21.75 billion of its total revenue from China, representing 22.5% of total sales.
Wells Fargo analyst Colin Langan published a report Monday saying the company is “seeing declining supply growth, driven by lower demand and diminishing returns on price cuts.” He recommends selling Tesla stock.
Wells Fargo expects Tesla's automotive gross margins, excluding environmental benefits, to decline given the “likelihood of further price cuts and lower volumes” as the year progresses.
Investors' attention is now shifting to Tesla's second-quarter earnings report later this month and a separate marketing event planned for August, when the company plans to unveil its design for a special-purpose robotaxi, or “CyberCab.”
— CNBC's Jordan Novet contributed to this report.
