Tesla’s Stocks Surged In Premarket Trade After Surpassed Estimates With 466,000 Deliveries In The Second Quarter

Tesla Inc. achieved a record-breaking number of vehicle deliveries in the second quarter, surpassing market expectations and driving a more than 6% increase in the stock during premarket trading on Monday. The electric-car manufacturer, led by Elon Musk, delivered 466,140 vehicles and produced 479,700 vehicles during the three-month period ending June 30. This marks the fifth consecutive reporting period in which Tesla has reported higher production levels compared to deliveries.

‍

According to a poll conducted by Refinitiv, analysts had projected Tesla to deliver around 445,000 cars, making the actual figures a significant beat. In the same quarter last year, Tesla delivered 254,695 vehicles. The impressive delivery numbers have led Wedbush analyst Dan Ives to state that this was a remarkable quarter for Tesla and will likely silence the skeptics.

‍

Delivery figures hold substantial importance for Tesla shareholders as they provide a close approximation of the company's sales. Total production for the quarter experienced a substantial 85.5% increase compared to the previous year, reaching nearly 480,000 vehicles.

‍

Tesla's delivery breakdown reveals 446,915 units of the Model 3 compact cars and Model Y sport-utility vehicles, along with 19,225 units of the premium Model S and Model X vehicles. To stimulate sales, Tesla increased discounts on its vehicles, offering a range of $1,600 to $7,500, and made all Model 3s eligible for full federal credits of $7,500 starting in June in the United States. Earlier this year, Tesla reduced prices globally by up to 20% following lower-than-expected delivery estimates in 2022.

‍

Despite competition from market leader BYD, Tesla is expected to achieve record sales in China, its second-largest market after North America. The company plans to release its financial results for the second quarter after the market closes on Wednesday, July 19.

‍

In other news, Ford Motor and General Motors, along with fast-charging equipment manufacturers, have agreed to adopt Tesla's North American Charging Standard (NACS) earlier this year.

‍

Tesla's shares closed at $261.77 on Friday before the second-quarter deliveries report and have seen a remarkable year-to-date increase of over 112%.

‍