Tesla's share price jumped about 9 per cent after the electric vehicle maker announced quarterly vehicle deliveries that exceeded market expectations.
The Texas-headquartered company said it delivered 443,956 vehicles during April to June, beating market estimates of 439,300.
Troy Teslike, an independent researcher with about 150,000 followers on X, had projected deliveries of 423,000 vehicles in the last quarter.
The better-than-expected deliveries are not only a breath of fresh air for Tesla's margins but for the EV market as a whole, said Thomas Monteiro, a senior analyst at Investing.com.
“The fact that the biggest EV maker in the world managed to deliver more cars … indicates that the EV play is not dead at all, as several analysts were quick to point out a few months ago,” Mr Monteiro told The National.
“The real story here for investors is on the technology front, with both the humanoid robot and the Robotaxi stories developing at an exciting pace. Both, particularly when combined, have the potential to become absolute game-changers for the company's margins, leading to the type of sales Tesla shareholders expect.”
However, Tesla’s second-quarter deliveries were 4.8 per cent less than the numbers reported in the same period last year.
Tesla, which is expected to announce its June quarter earnings on July 23, did not give any reason behind the annual decline in vehicle deliveries.
In the March quarter, the company reported about an 8.5 per cent yearly drop in deliveries and attributed the dip to disruptions caused by Houthi rebel strikes in the Red Sea and an attack at its German factory. That quarter marked the first time Tesla reported a year-on-year decline since the Covid-19 pandemic affected deliveries in 2020.
In the second quarter, the production of the company stood at 410,831 vehicles, more than a 14.3 per cent drop from the period the previous year.
After the announcement, Tesla’s stock rose 8.90 per cent to trade at $228.53 a share at 8.20pm UAE time (12.20pm New York time), giving the company a market value of $716.09 billion. The company’s shares have dropped about 8 per cent since the start of the year.
Tesla's stock is one of the worst performers in the S&P 500 index, which has risen over 15 per cent since the start of the year.
Tesla said it delivered approximately 422,405 Model Y and Model 3 vehicles in the last quarter and around 21,551 higher-priced cars, including the Model X and Model S.
In November, Tesla delivered its first Cybertrucks, four years after the futuristic vehicles first made their debut. The company said it could build more than 125,000 Cybertrucks in a year, but it did not break out its sales of the Cybertrucks in the last quarter.
Last month, the company announced its fourth recall, affecting 11,688 trucks since the model was launched.
In April, the EV maker said it aims to introduce “new models” before the second half of next year as it struggled with weak sales, declining profits and increasing competition in the Chinese market. The carmaker said it is focused on “profitable growth” by using existing factories and production lines to introduce new, cheaper products.
Tesla reported a 55 per cent yearly drop in March quarter net profit to more than $1.1 billion, while revenue dropped 9 per cent to about $21.3 billion during the period.
The Nasdaq-listed company also announced it deployed 9.4 gigawatt hours of energy storage products in the second quarter, the highest quarterly deployment yet.
-
Mr Musk and his mother Maye Musk arrive at the Met Gala in May. AFP -
Elon Musk booed on stage at a Dave Chappelle show in San Francisco, California. Reuters -
France's President Emmanuel Macron and Mr Musk meet in New Orleans, Louisiana. Reuters -
Tesla chief Mr Musk speaks with Dan Priestly, senior manager of Tesla Semi Truck Engineering, during the live-streamed unveiling of the Tesla semi electric lorry. Reuters -
Mr Musk speaks during the live-streamed unveiling. Reuters -
South Korean President Yoon Suk-yeol holds a virtual meeting with Mr Musk. EPA -
Mr Musk arrives at the Baron Investment Conference at the Metropolitan Opera House in New York. AP -
Mr Musk in Manhattan, on November 4. Reuters -
Mr Musk appears online at the B20 Summit as part of the G20 dialogue in Nusa Dua, Bali, on November 14. AFP -
After months of negotiations, Mr Musk finally bought Twitter on October 27. AFP -
The billionaire took control of microblogging platform and fired its top executives, including chief executive Parag Agrawal, left, as well as the company's chief financial officer and its head of legal policy, trust and safety. AFP -
Mr Musk entering Twitter headquarters carrying a sink through the lobby area on October 26. AP -
Mr Musk and his children Damian, Kai, Saxon and Griffin met Pope Francis in July at the Vatican. AFP -
Mr Musk speaks by video in June to the Qatar Economic Forum in Doha. Bloomberg -
Mr Musk answers questions at the Qatar Economic Forum. Bloomberg -
Mr Musk arrives at the Met Gala at the Metropolitan Museum of Art in New York City in May. Reuters -
Mother and son pose and laugh on the Met Gala red carpet. EPA -
Mr Musk waves at the Met Gala. Reuters -
Mr Musk joins in online at the 'Financial Times' Future of the Car Summit in May. Financial Times -
Mr Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, in March. Reuters -
Mr Musk at the Tesla factory in Berlin, Germany, in March. AP -
Mr Musk speaks at SpaceX's Starbase centre in South Texas in February. AFP -
The entrepreneur shakes hands with Brazilian President Jair Bolsonaro in Porto Feliz, Brazil, in May. AP -
Mr Bolsonaro and Mr Musk greet each other in Sao Paulo. Reuters -
Indonesian President Joko Widodo meets Mr Musk at the SpaceX launch site in Boca Chica, Texas, in May. Reuters -
Mr Musk shows Mr Widodo his mobile phone during a tour of the SpaceX launch site in Texas. Reuters
