Source: Wall Street News Author: Zhao Yuhe, Chang Jiayi On July 2nd, delivery data showed that the company delivered a total of 444,000 new cars in Q2, a year-on-year decrease of 4.8%, with two consecutive quarters of decline, but better than the market's expected 439,300 new cars. Q2 total production volume was about 411,000. This news stimulated Tesla, which rose more than 10% in regular trading hours on Tuesday, the sixth consecutive trading day of gains. At the same time, better-than-expected deliveries also helped Tesla maintain its position as the global leader in electric vehicle sales, surpassing its competitor BYD at one point. Delivery declined, energy storage products offer hope. In the past year and a half, Musk has ordered a price cut for the entire Tesla lineup, but these measures have not been enough to sustain sales. Data shows that Tesla delivered 422,405 of its best-selling Model 3 and Model Y vehicles in the second quarter, down from 446,915 a year ago. Meanwhile, Tesla has not provided detailed sales information for the Cybertruck. Two previous recalls suggest that Tesla has delivered more than 11,000 Cybertrucks to customers. At last month's annual shareholder meeting, Musk said the company produced 1,300 Cybertrucks in a week, but did not specify the time or whether it would maintain that production rate. The report showed that Tesla produced 410,831 cars in the second quarter, down 14% from the same period last year. Tesla did not explain the reasons for the sales and output decline, but is expected to explain in detail when it announces its second quarter results on July 23. Tesla CEO Elon Musk announced massive layoffs in April, pushing for up to a 20% reduction in staff. Analysts believe the layoffs may have affected delivery data. Moreover, the Cybertruck, Tesla's first new model in years, has been slow to ramp up. Tesla attributed the slowdown in the first quarter to a suspected arson attack on a factory near Berlin and the transfer of transport along the Red Sea route. However, despite the limited external interference in the second quarter, the company's growth remained weak due to aging models. Tesla also said it deployed 9.4 GWh of energy storage products in the second quarter, a record high for a single quarter, up from 4,053 MWh in the first quarter, which means the company has almost reached the number of energy storage products deployed last year in the first half of 2024. Analysts believe that energy storage products offer some hope for Tesla in the face of declining auto sales, but the challenge lies in translating this growth into meaningful revenue. Boosted by better-than-expected deliveries, Tesla's stock price jumped more than 10% on Tuesday, before narrowing to 8.87%, closing at $228.47. Tesla has rebounded about 19% since the beginning of the month, with gains in the past five trading days. However, the slowdown in growth and the decline in profit expectations have put pressure on investor sentiment. Tesla's stock has fallen 15% this year, while the S&P 500 has risen about 15%. Sales in China and the United States exceeded expectations, boosting Tesla's strong performance, according to analysts, despite Tesla not providing regional sales breakdowns. Ken Mahoney, CEO of Mahoney Asset Management, said, "It's very good to see domestic sales in the United States and China picking up compared to their struggles in the first quarter of this year." In addition, China's electric car makers had a strong second quarter. BYD said its electric car sales in the second quarter jumped 21% to 426,039. Meanwhile, NIO and Li Auto reported vehicle delivery data for June. Tesla's sales in China, including domestic sales and exports to Europe and other regions, fell 17% in the second quarter from a year earlier but were better than expected. Tesla did not provide a breakdown of its domestic sales in China. Tesla's sales in Europe have been particularly weak, with May sales down 36%, mainly due to reduced electric vehicle subsidies and weak demand from fleet operators, which accounted for nearly half of regional sales last year. Wall Street analysts have varying opinions on Tesla's future, with some pointing out that Tesla's fundamentals are still a concern.
Tesla delivered a total of 444,000 new vehicles in Q2, exceeding the market's expected 439,300 and helping Tesla maintain its position as the global leader in electric vehicle sales. The data shows that Tesla's sales in China and the US markets exceeded expectations.
On July 2nd,$Tesla (TSLA.US)$According to the disclosed delivery data, the company delivered a total of 444,000 new autos in Q2, a decrease of 4.8% year-on-year. Although it has declined for two consecutive quarters, this is better than the market's expected 439,300 autos. The total output of Q2 is about 411,000. This news stimulated Tesla's rise by more than 10% on Tuesday, which was Tesla's sixth consecutive trading day with an increase. At the same time, the better-than-expected delivery volume also helped Tesla maintain its position at the top of the global electric autos sales rankings, surpassing its competitor BYD at one point.
Delivery declined, energy storage products offer hope.
In the past year and a half, Musk has ordered a price cut for the entire Tesla lineup, but these measures have not been enough to sustain sales. Data shows that Tesla delivered 422,405 of its best-selling Model 3 and Model Y vehicles in the second quarter, down from 446,915 a year ago.
Meanwhile, Tesla has not provided detailed sales information for the Cybertruck. Two previous recalls suggest that Tesla has delivered more than 11,000 Cybertrucks to customers. At last month's annual shareholder meeting, Musk said the company produced 1,300 Cybertrucks in a week, but did not specify the time or whether it would maintain that production rate.
The report showed that Tesla produced 410,831 cars in the second quarter, down 14% from the same period last year. Tesla did not explain the reasons for the sales and output decline, but is expected to explain in detail when it announces its second quarter results on July 23.
Tesla CEO Elon Musk announced massive layoffs in April, pushing for up to a 20% reduction in staff. Analysts believe the layoffs may have affected delivery data. Moreover, the Cybertruck, Tesla's first new model in years, has been slow to ramp up. Tesla attributed the slowdown in the first quarter to a suspected arson attack on a factory near Berlin and the transfer of transport along the Red Sea route. However, despite the limited external interference in the second quarter, the company's growth remained weak due to aging models.
Tesla also said it deployed 9.4 GWh of energy storage products in the second quarter, a record high for a single quarter, up from 4,053 MWh in the first quarter, which means the company has almost reached the number of energy storage products deployed last year in the first half of 2024. Analysts believe that energy storage products offer some hope for Tesla in the face of declining auto sales, but the challenge lies in translating this growth into meaningful revenue.
Boosted by better-than-expected deliveries, Tesla's stock price rose more than 10% during Tuesday's trading session, and closed up 10.2% at $231.26 per share. Since the beginning of this month, Tesla has rebounded by about 19%, and has risen in the past five trading days. However, the slowdown in growth and declining profit expectations have put pressure on investor sentiment. Tesla's stock price has fallen 15% this year, while the S&P 500 index, over the same period, has risen by about 15%.
Sales in China and the United States exceeded expectations, boosting Tesla's strong performance, according to analysts, despite Tesla not providing regional sales breakdowns.
Sales in China and the United States exceeded expectations, boosting Tesla's strong performance, according to analysts, despite Tesla not providing regional sales breakdowns.
Ken Mahoney, CEO of Mahoney Asset Management, said, "It's very good to see domestic sales in the United States and China picking up compared to their struggles in the first quarter of this year."
In addition, China's electric car makers had a strong second quarter. BYD said its electric car sales in the second quarter jumped 21% to 426,039. Meanwhile, NIO and Li Auto reported vehicle delivery data for June.
Tesla's sales in China, including domestic sales and exports to Europe and other regions, fell 17% in the second quarter from a year earlier but were better than expected. Tesla did not provide a breakdown of its domestic sales in China.
Tesla's sales in Europe have been particularly weak, with May sales down 36%, mainly due to reduced electric vehicle subsidies and weak demand from fleet operators, which accounted for nearly half of regional sales last year.
Wall Street analysts have varying opinions on Tesla's future, with some pointing out that Tesla's fundamentals are still a concern.
Wall Street analysts have varying opinions on Tesla's future, with some pointing out that Tesla's fundamentals are still a concern.
Garrett Nelson, Vice President and Senior Stock Analyst of CFRA Research, said that the higher-than-expected delivery volume "greatly eased concerns about weak demand for electric cars." After shareholders re-approved Musk's 2018 compensation plan at the annual meeting in mid-June, Tesla's stock continued to ride on positive momentum.
Investment bank Stifel covered Tesla for the first time last week and gave it a buy rating with a target price of $265, which means the stock still has about 35% upside potential.
However, Colin Langan, an analyst at Wells Fargo & Co, issued a report on Monday, saying that they believed "the decline in demand and reduced returns from price cuts led to a decline in delivery growth." He recommended selling Tesla's stock and expected Tesla's automotive gross margin to decline due to "greater likelihood of price cuts and decreased volume this year."
Analysis shows that Tesla's leading position in the US electric vehicle sales is shrinking. According to data from Motor Intelligence, in May, Tesla accounted for nearly half of US electric vehicle sales, compared with about 60% in the same period last year. US auto sales for the first half of this year are expected to remain relatively flat compared with last year, as the industry continues to face high interest rates that push up monthly payments.
Tesla is not the only manufacturer dealing with a slowdown in the electric car market. From old giants like Ford Motor to emerging Rivian, all have warned that US demand for electric cars is tepid, and consumers' enthusiasm for giving up gasoline cars is less than expected.
Musk said that if vehicle prices were cheaper, millions more people would buy Tesla. He said Tesla will launch new, more affordable models early next year, although the company has provided little detail beyond that they will be produced on existing production lines. Musk also prioritizes building fully-autonomous robot taxis and plans to showcase the vehicle at an event on August 8th.
"For most people, whether they want a Tesla is not the issue. They really do want a Tesla. They just don't have enough money to buy one," said Musk at the June shareholders meeting.
Editor/Lambor