$TSLA unveiled its Q2 production and delivery figures, surpassing predictions significantly, courtesy of the surge in sales stemming from the company’s price cuts and the federal EV tax credits.
Tesla reported a global production of 479,700 units and 466,140 deliveries for Q2. This delivery count easily outperformed Wall Street’s consensus estimates of 448,599 units, as well as Q1’s total of 422,875. The company set new records for both production and delivery totals for Q2.
The primary focus of analysts and investors is on the delivery totals, as they offer the closest approximation to sales totals, which Tesla doesn’t divulge. Dissecting the delivery data, Tesla shipped 446,915 Model 3 and Model Ys, and 19,225 higher-priced Model S and Model X vehicles. Around 5% of the company’s sales were subject to lease accounting.
The impressive Q2 delivery performance of Tesla points towards the continued sales enhancement resulting from the company’s price cuts, both domestically and internationally.
However, there is some uncertainty about the potential impact on profits. Furthermore, Tesla enjoyed an additional push from the federal government in Q2 as every trim of the Model 3 sedan was eligible for the full $7,500 federal tax credit.
Wall Street analysts have downgraded Tesla shares after the stock’s massive surge following significant gains in the tech sector. Many analysts attribute this surge to the substantial profits made by AI-related stocks but warn that Tesla might not be the major AI player that many investors seem to think it is.
Analysts like Mark Delaney from Goldman and Adam Jonas from Morgan Stanley currently view the stock as fairly valued.
Tesla declared that it would announce the Q2 earnings results after the bell on July 19th.