Key Takeaways
- Tesla produced 410,831 vehicles and delivered 443,956 in Q2 2024.
- Deliveries beat Wall Street estimates but were down 4.8% year-over-year.
- Shares are up over 22% this week, short sellers are down $3.5b.
TSLA (Tesla) shares surged on Tuesday after the EV maker reported stronger-than-expected vehicle production and deliveries for the second quarter of 2024. Tesla produced 410,831 vehicles and delivered 443,956, exceeding analysts’ expectations of 439,000 deliveries. Although deliveries fell 4.8% from the same quarter last year, they rose 14.8% from the first quarter of 2024. Shares are now down just 1.5% year-to-date, after a 44% drawdown between January and April.
Challenges and Strategic Incentives
Tesla faced several challenges in the year’s first half, including an 8.5% drop in first-quarter deliveries and a 13% year-over-year revenue decline. These setbacks were attributed to temporary factory shutdowns due to an alleged arson attack in Germany, shipping delays from Red Sea conflicts, and increased competition from other EV makers, particularly in China. To boost sales, Tesla has offered various discounts and incentives, including a zero-interest loan in China for Model 3 and Model Y purchases by July 31.
Earnings and New Product Launches
Investors are now turning their attention to Tesla‘s upcoming second-quarter earnings report, due out July 23rd after market close. Analysts are currently forecasting revenues of $24.2 billion and earnings per share of $0.60.
Additionally, excitement is brewing for their CyberCab event in August. Bulls hope this new product will revitalize interest and demand for Tesla‘s offerings after the lousy reception to the Cybertruck, released earlier this year.
Market Update Into September 14th: Rate Hike Incoming?