Tesla reports 14% decline in Q2 vehicle deliveries, second straight drop

Tesla has reported approximately 384,000 vehicle deliveries in the second quarter, reflecting a 14% decrease compared to the same period last year. This marks the company's second consecutive quarterly decline. Nevertheless, shares rose nearly 5% as the results exceeded some analysts' expectations. In the second quarter of the previous year, Tesla achieved 443,956 deliveries and produced 410,831 vehicles. Analysts had anticipated delivery figures around 387,000, according to data from FactSet. The first quarter of this year also saw a 13% drop in deliveries, totaling 336,681 vehicles. While Tesla's delivery numbers serve as a close approximation of vehicle sales, they are not explicitly defined in the company’s communications with shareholders. The Austin, Texas-based automaker does not separate sales and production figures by model or region. However, it did report that 396,835 of its most popular models, the Model 3 and Model Y, were produced, with 373,728 units delivered during the second quarter. Investor sentiment heading into this report was cautious. Independent researcher Troy Teslike had predicted deliveries would be around 356,000, while prediction market Kalshi forecasted approximately 364,000. Gene Munster from Deepwater Asset Management noted that the deliveries exceeded the “whisper” number by 4% and believes this decline may represent the lowest point for Tesla. The electric vehicle market is becoming increasingly competitive, particularly with newer and more affordable models from Chinese manufacturers. In previous quarters, Tesla attributed declining sales partly to customers delaying their orders for updated versions of the Model Y SUV, which began shipping in March. CEO Elon Musk's political affiliations and actions have also drawn scrutiny, creating a backlash that may impact the company’s reputation and sales. Musk was a significant financial supporter of former President Donald Trump, and his recent comments against certain political initiatives could threaten Tesla's solar and battery business, potentially reducing EV sales by about 100,000 vehicles annually by 2035, according to Energy Innovation. In addition to its core models, Tesla reported 10,394 deliveries of other vehicles, including the Cybertruck, which has faced multiple recalls since its launch in November 2023 due to various hardware and software issues. Despite the current downturn, Tesla's market cap has climbed back over $1 trillion, though its shares have seen a 22% decline for the year, making it the worst performer among large tech companies. The company is set to discuss its financial results for the second quarter with investors on July 23, after market hours.