Tesla global second-quarter deliveries dropped 4% compared to a year ago but came in well above analyst expectations, according to the company's release Tuesday. TSLA shares surged.
Tesla announced Tuesday that it delivered 443,956 vehicles in Q2 while it produced 410,831 units. The EV giant delivered a combined 422,405 Model 3 and Model Y units along with 21,551 "other" vehicles. The total is down 4% compared to last year's 466,140 deliveries. However, it is a 15% increase compared to Q1.
Tesla hit a record 484,507 deliveries in Q4 2023. The company reported in early April that global first-quarter deliveries totaled 386,810, undercutting even the lowest estimates and marking the lowest quarterly deliveries since 344,000 in Q2 2022.
Analysts predicted global second-quarter Tesla deliveries would total 436,000 vehicles, according to FactSet. The consensus view at the end of May called for 448,000 deliveries.
However, in the run-up to Tuesday many analysts believed Tesla deliveries would come in below 436,000. On Friday, Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote deliveries should approach that consensus number. He added that "whisper numbers" are in the 415,000-420,000 range.
Tesla's China Rivals Rev Up Sales With Cheaper New Models Due
Tesla stock gained 10.2% to 231.26 during market action on Tuesday. On Monday, TSLA shares jumped 6% to 209.86, reclaiming the 200-day moving average for the first time since January.
EV startup Rivian also reported Q2 deliveries on Tuesday.
What About Tesla Energy?
Along with global delivery numbers, Tesla also reported Tuesday that it deployed 9.4 gigawatt hours (GWh) of energy storage products in Q2, the company's highest quarterly deployment to date.
In Q1, Tesla deployed 4,053 megawatt-hours (MWh) in Q1, which was an all-time high.
Tesla currently offers solar panels and a solar roof, along with powerwalls for energy storage. On the commercial side, Tesla also offers the "megapack."
Adam Jonas, Morgan Stanley's high-profile auto analyst, wrote last week that as generative artificial intelligence (Gen AI) increases energy demand, Tesla's energy business could be "uniquely positioned to benefit from investment in the U.S. electrical grid accelerated by the AI boom."
Jonas currently values Tesla Energy at $36 per Tesla share, or around $130 billion.
The analyst projects Tesla Energy will generate around $7 billion in revenue this year, a 20% increase compared to 2023. Jonas also projects Tesla Energy margins will surpass the company's auto margins in 2024.
Chief Executive Elon Musk said during Tesla's June 13 shareholder meeting that the company is "tracking" toward 200%-300% year-over-year growth in energy storage and deployment of stationery pack.
Tesla Stock Performance
TSLA shares' advance on Monday added to a 8.1% jump last week. Tesla stock has now broken out from a 191.08 handle buy point, according to MarketSurge chart analysis. The buy range extends to 200.63.
The stock hit resistance at the 40-week line on Friday, but closed higher. In June, shares gained more than 11%.
Tesla has rallied since reporting first-quarter earnings and revenue on April 23, finding support just above its 50-day moving average.
Tesla shareholders recently voted in favor of giving Musk his 2018 $56 billion pay package and reincorporating the EV giant in Texas, moving it from Delaware.
With the company's annual meeting in the rearview mirror, analysts are looking to Tesla's second-quarter earnings in mid-July. The company will also unveil its robotaxi on Aug. 8.
Tesla stock ranks sixth in the 35-member IBD Auto Manufacturers industry group. The stock has a 59 Composite Rating out of a best-possible 99. Shares have a 32 Relative Strength Rating and a 62 EPS Rating.
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