Business
Tesla Surpasses Expectations with Strong Q2 2024 Delivery and Production Numbers
Tesla has exceeded market expectations by revealing impressive delivery and production figures for the second quarter of 2024. The electric vehicle giant reported a total of 443,956 deliveries and 410,831 units produced during the quarter, outperforming Wall Street’s estimates.
Analysts had projected Tesla’s deliveries to reach around 439,000 vehicles in the April to June period, as compiled by FactSet StreetAccount. This quarter’s performance, though down by 4.8% compared to the previous year, showed a significant 14.8% increase from Q1 2024.
Shares in Tesla surged over 8% following the positive delivery report, marking a strong rebound after a challenging year. Prior to this announcement, Tesla’s shares had faced a 16% decline in 2024, despite a recent 6% rally.
Tesla’s delivery breakdown comprises two main categories: Model 3 and Model Y vehicles grouped together, and all other models. The company’s current lineup features popular models like the Model Y, Model 3, Cybertruck, Model X, and Model S.
Amidst recent challenges including factory shutdowns and shipping delays due to external factors like the Red Sea conflicts, Tesla’s sales had been sluggish. Additionally, increased competition in the EV market, particularly in China, has impacted the brand’s performance.
In an attempt to boost sales, Tesla has offered various incentives and discounts throughout this year, including a unique promotion in China to stimulate purchases of Model 3 and Model Y vehicles by the end of July.
Wells Fargo, an influential financial institution, expressed concerns regarding Tesla’s future delivery growth and margins, hinting at potential challenges ahead. The firm anticipates a decline in delivery growth driven by lower demand and diminishing returns on price cuts.
Looking ahead, all eyes are on Tesla’s upcoming second-quarter earnings report and a planned marketing event in August where the company plans to unveil its much-anticipated CyberCab design.
