Shares of Tesla (NASDAQ:TSLA) opened in the green after the EV company reported that it had produced 410,831 vehicles while delivering 443,956 of them during the second quarter. Production fell by 14.35% compared to a year ago while deliveries dropped by 4.76%.
So, why exactly is TSLA stock trading higher on the news? While deliveries fell, they still beat the consensus analyst estimate for 439,000 deliveries. Troy Teslike, an independent Tesla researcher, had called for 423,000 deliveries.
It has been a rough year for the EV market as customers grappled with high interest rates and inflation. During the first quarter, Tesla’s deliveries fell 8.5% to 386,610 vehicles, marking the first annual drop since 2020. Competition has also affected TSLA as its sales in China have been affected by new models from companies like BYD (OTCMKTS:BYDDY) and Nio (NYSE:NIO). That comes despite Tesla cutting the prices for its vehicles.
TSLA Stock: Tesla’s Second Quarter Deliveries Fall by 4.76% to 443,956
With deliveries now out of the way, shareholders should mark their calendars for Tuesday, July 23 after the market close, as that is when Tesla will report its earnings.
“Tesla vehicle deliveries and storage deployments represent only two measures of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including average selling price, cost of sales, foreign exchange movements and others as to be disclosed in the 10-Q for the quarter ended on June 30, 2024,” said the company.
For the quarter, analysts are expecting revenue of $23.88 billion, signaling a yearly decline of 4.2%. GAAP EPS is expected to decline by 38.61% to 48 cents while gross margin is expected to fall to 17.45% compared to 18.20% year over year (YOY).
It’s clear that Tesla is facing challenges, although the big question is how much of that has already been priced in. TSLA stock is down by nearly 20% compared to a year ago.
On the bright side, analysts appear optimistic for the third quarter, calling for revenue growth of 9.04% to $25.46 billion. GAAP EPS is expected to be 56 cents compared to 53 cents YOY.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
