(CTN News) – Tesla announced on Tuesday that its second quarter 2024 deliveries exceeded expectations following Wall Street’s revisions to its projections.
Located in Austin, Texas From April to June, Tesla reported the sale of 422,405 Model 3 compact cars, 422,405 Model Y SUVs, and 21,551 other electric vehicles (EVs). Tesla has not disclosed a breakdown of the deliveries of the Model S sedan, Model X crossover SUV, and Cybertruck, an electric pickup that was available for delivery in November.
In the most recent quarter, Tesla delivered 443,956 electric cars to consumers, a nearly 5% decrease from the 466,000 vehicles dispatched during the same period in 2023. Wall Street anticipated the delivery of approximately 436,000 units, according to FactSet. Numerous analysts had revised their projections downward to a range of 415,000 to 420,000 units prior to Tuesday.
The company produced 388,576 units of Model Y and Model 3, in addition to manufacturing 21,551 units of each other model. The total number of units manufactured is 410,831, which represents a substantial decrease from the 479,700 units produced the previous year.
In June, Tesla sold 11,688 Cybertrucks.
According to the most recent recall of the vehicle. This is equivalent to an average of 1,754 Cybertruck deliveries per month. Tesla’s CEO, Elon Musk, claimed earlier this month that the company had recently reached an optimum production rate of 1,300 Cybertrucks per week.
Sales were bolstered by incentives offered to consumers, including intermittent price reductions and lower borrowing rates, in addition to the federal $7,500 tax credit that is available in the United States.
Gary Black of The Future Fund, who made this observation on Tuesday, suggests that may conceivably extend its low-interest financing into the third quarter rather than relying on price reductions to increase sales.
Following a series of losses for the organization, at least one analyst characterized the initial quarter as a “nightmare.” Nevertheless, the announcement made on Tuesday is a substantial departure from the previous trajectory. Tesla manufactured 433,371 electric vehicles (EVs) during the January to March quarter; however, only 386,610 were delivered.
Tesla has recently been reducing investor expectations and prioritizing cost-cutting in preparation for its upcoming growth phase. Tesla has terminated at least 14% of its workforce since April, and the organization has lost several top-level personnel, including the director of its Supercharger division.
In a note published on Tuesday, Wedbush Securities analyst Dan Ives stated, “In summary, we believe that most challenging period is behind it, as we anticipate that the EV demand story will resume for the disruptive technology company in advance of a historic Robotaxi Day on August 8th.”
Those who support Tesla, like Ives, will “enjoy the outcomes.”
Tesla stock surged by more than 5% subsequent to the publication of second-quarter delivery data. Despite the fact that shares were among the worst performers in the S&P 500 earlier this year, they have since rebounded significantly, with an approximately 11% year-to-date decline.
Tesla’s bullish forecasts, as well as its assertions regarding the potential of self-driving robots and the Optimus humanoid robots, which Musk believes could be sold for between $20,000 and $30,000 in the future, have significantly contributed to the stock’s recovery.
Stifel Nicolaus initiated coverage of Tesla on June 26 with a $265 price objective. Cathie Wood of ARK Invest Management, a Tesla optimist, anticipates that the stock will increase by over 1,400% to $2,600 per share by 2029, primarily due to the robotaxis.
The stock has also been bolstered by the reaffirmation of shareholder support for Musk’s $56 billion compensation package, which could potentially grant him over 20% ownership of Tesla. The business will file a lawsuit in Delaware’s state court to request that a judge overturn their previous decision, thereby nullifying the agreement.
Source: Investopedia
