Tesla stock surged 5% in early trading on Tuesday after the electric vehicle company exceeded Wall Street expectations with its quarterly vehicle deliveries. The company delivered 443,956 vehicles during the second quarter, surpassing analyst estimates of 439,302 deliveries. In a company statement, Tesla disclosed that it produced 411,000 vehicles and delivered 444,000 vehicles, with 422,405 being models 3/Y and the remaining 21,551 being other models.
Despite the positive delivery numbers, Tesla faces tough competition in the electric vehicle market, especially from Chinese counterparts, leading to a challenging landscape in the industry. CEO Elon Musk acknowledged the struggle with near-term demand and sales during a recent shareholder meeting. The company’s stock has rallied over 50% since hitting a 52-week low in April, but it still remains down about 10% year-to-date. Analysts at Wells Fargo warned that Tesla’s gross margin could be impacted due to the crowded EV market and flattening adoption rates in the US and EU.
Investors have been speculating about Tesla’s Cybertruck deliveries, with the company announcing its fourth recall since the vehicle’s release. Tesla’s strong delivery numbers come amidst better-than-expected reports from Chinese EV makers like Li Auto, Nio, and XPeng, contributing to a positive sentiment in the industry overall. Despite the challenges ahead, Tesla’s performance in vehicle deliveries has been a bright spot for the company in a competitive market environment.
