Tesla on Tuesday was posted the second quarter vehicle production and delivery numbers for 2024;
Here are the key numbers:
Total deliveries Q2 2024: 443,956 vehicles
Total production Q2 2024: 410,831 vehicles
Tesla’s numbers beat Wall Street estimates. Analysts had expected Tesla deliveries to reach 439,000 in the quarter ended June 30, according to a consensus estimate compiled by FactSet StreetAccount. The total number of deliveries in the second quarter was down 4.8% from 466,140 a year earlier, but 14.8% higher than the first quarter of 2024.
Tesla shares rose more than 6% in premarket trading on better-than-expected deliveries. Before the report, Tesla shares were down 16% in 2024, even after Monday’s 6% rally.
Deliveries are the closest approximation of sales disclosed by the electric vehicle manufacturer. 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 vehicles, the Model 3 sedan and the new Cybertruck pickup, as well as the Model X SUV and the flagship Model S sedan.
In April, Tesla reported an 8.5% drop in first-quarter deliveries to 386,810, the first annual decline since 2020. Weeks later the company reported a 13% year-over-year drop in revenue for the quarter, “primarily due to lower average selling price.”
Sluggish sales were partly the result of temporary factory shutdowns initiated in response to an alleged arson attack at Tesla’s factory in Germany, as well as shipping delays following clashes in the Red Sea, Tesla said.
New Tesla vehicles are seen in front of the Tilburg Factory & Delivery Center in Tilburg.
Sebastian Gollnow | Picture Alliance | Getty Images
But the sales decline was also related to Tesla’s aging vehicle lineup, increased competition from other EV makers, especially in China, and brand erosion that a recent survey attributed in part to CEO Elon Musk’s “antics” and “political rants.”
Tesla has offered a number of discounts and other incentives this year to try to boost sales.
In China, Tesla currently offers one zero interest loan as an incentive to get customers to buy a Model 3 or Model Y by July 31st. According to the annual 2023 archivingTesla generated about $21.75 billion of its total revenue from China, accounting for 22.5% of total sales.
Colin Langan, an analyst at Wells Fargo, issued a report on Monday saying the company is seeing “decreasing delivery growth driven by lower demand and the reduced performance of price cuts.” He recommends selling Tesla stock.
Wells Fargo expects Tesla’s auto gross margins, excluding environmental credits, to decline given the “likelihood of more price cuts and lower turnover” as the year continues.
Investors’ focus will now shift 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 plan for a dedicated robotaxi, or “CyberCab.”
— CNBC’s Jordan Novet contributed to this report.
