Key Points

  • Tesla has released its second-quarter vehicle production and deliveries report for 2024, showing production of 410,831 vehicles and deliveries of 443,956 vehicles.
  • Deliveries, the closest approximation of sales disclosed by Tesla, surpassed Wall Street estimates but were down 4.8% from the previous year.
  • Tesla shares surged 8.8% to $228.29 following the report, despite being down 16% year-to-date.

Detailed Summary

Tesla's second-quarter vehicle production and deliveries report for 2024 exceeded analysts' expectations, with a total of 443,956 vehicles delivered and 410,831 vehicles produced. Analysts had anticipated 439,000 deliveries for the quarter ending June 30, according to FactSet StreetAccount. Despite the strong performance, deliveries were 4.8% lower than the 466,140 vehicles delivered in the same quarter last year but increased by 14.8% from the first quarter of this year.

The rise in Tesla's stock by 8.8% to $228.29 reflects investor confidence, even as the stock had been down 16% in 2024 prior to the report. Deliveries, Tesla's closest measure of sales, are categorized into Model 3 and Model Y vehicles and all other vehicles, but the company does not provide figures for individual models or specific regions.

Tesla's lineup includes Model Y crossover utility vehicles, Model 3 sedans, Cybertruck pickups, Model X SUVs, and the flagship Model S sedans. The first quarter saw an 8.5% annual decline in deliveries, the first since 2020, with subsequent revenue dropping 13% year-over-year, mainly due to lower average selling prices.

Factors affecting sales included temporary factory shutdowns following an alleged arson attack at Tesla's factory in Germany and shipping delays due to Red Sea conflicts. The aging vehicle lineup, increased competition, especially from Chinese EV makers, and brand erosion linked to CEO Elon Musk's public statements also contributed to the sales drop.

Tesla has introduced discounts and incentives to boost sales, including a zero-interest loan offer in China for Model 3 or Model Y purchases by July 31. In 2023, Tesla generated approximately $21.75 billion in revenue from China, accounting for 22.5% of total sales.

Wells Fargo analyst Colin Langan advised selling Tesla shares, citing declining delivery growth due to lower demand and diminishing returns on price cuts. The firm predicts a drop in Tesla's automotive gross margins, excluding environmental credits, due to potential further price cuts and reduced volumes.

Investors will now focus on Tesla's second-quarter earnings report and an upcoming marketing event in August, where the company plans to unveil its design for a dedicated robotaxi, known as the "CyberCab."