Tesla Stock Surges as Q2 Deliveries Exceed Expectations

Last updated: July 2, 2024

A white Tesla carTesla stock surged 5% in early trading Tuesday after the electric vehicle giant reported quarterly deliveries that surpassed Wall Street’s forecasts. The company delivered 443,956 vehicles in Q2, beating the analyst consensus of 439,302.

“We produced approximately 411,000 vehicles and delivered approximately 444,000 vehicles,” Tesla stated. This includes 422,405 Model 3/Y vehicles and 21,551 other models. This figure marks an increase from the 386,810 vehicles delivered in Q1 but falls short of the 466,140 delivered a year ago.

Tesla faces stiff competition from Chinese EV makers amid a slowing market. To cut costs, Tesla reduced its global workforce by over 10% earlier this year, signaling tough times ahead. CEO Elon Musk acknowledged the industry’s transition period, noting that both Tesla and its competitors are scaling back investments and production.

Wells Fargo analysts warned of impacts on Tesla’s gross margin in the crowded market. Colin Langan’s team noted, “Flattening EV adoption in the US and EU, with aggressive competition in China, leaves few immediate levers to pull to increase volumes.”

They maintain an underweight rating on Tesla with a $120 price target.

Tesla shares rose over 6% on Monday following better-than-expected delivery reports from Chinese peers Li Auto, Nio, and XPeng. Tesla stock has rallied more than 50% since its 52-week low on April 22 but remains down about 10% year to date.

Investors are also watching Cybertruck sales, inferred through recall notices, with the latest affecting 11,688 trucks. As the EV market navigates these challenging waters, Tesla’s performance remains a critical indicator of broader industry trends.

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Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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