Shares of Tesla (NASDAQ:TSLA) were on an upswing in Tuesday’s trading after the EV major’s Q2 vehicle deliveries pleasantly surprised investors. The company’s Q2 vehicle deliveries came in at 443,956, a decline of 4.8% year-over-year but above consensus estimates of 436,000 vehicles. Tesla’s vehicle deliveries are the closest approximation of sales disclosed by the firm.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The company’s second-quarter deliveries included 422,405 Model 3 and Model Y vehicles. Furthermore, TSLA produced 410,831 vehicles during this timeframe.
Tesla Overcomes Issues from Earlier This Year
With its Q2 vehicle delivery results, the company seems to have overcome issues from earlier this year. This includes a suspected arson attack at its Berlin factory that resulted in factory shutdowns and shipping diversions due to the Red Sea conflict.
However, even though the company’s CEO, Elon Musk, is trying to revive sales by slashing prices and offering leasing deals to boost demand, the company’s lineup of older vehicles is struggling against fresher EV offerings from its rivals.
Additionally, overall vehicle sales in the U.S. are likely to have slowed significantly in the second quarter. According to a Reuters report, citing research from Cox Automotive, sales of new vehicles in the second quarter likely grew 1% to around 4.2 million units. This is a significant deceleration compared to the 16% year-over-year increase from the same period a year ago.
Tesla Is Struggling in China
Tesla is not faring well in China as its China-made EV sales dropped 24.2% to 71,007 vehicles in June, according to data from the China Passenger Car Association (CPCA). Furthermore, deliveries of Tesla’s Model 3 and Model Y vehicles slumped by 2.2% in June compared to the previous month.
In comparison, Tesla’s Chinese rival, BYD (OTC:BYDDY), saw its vehicle sales jump by 35.2% year-over-year to 340,211, which equates to a 3% month-over-month rise.
Is Tesla Buy or Sell?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 12 Buys, 13 Holds, and eight Sells. Over the past year, TSLA has declined by more than 20%, and the average TSLA price target of $182.92 implies a downside potential of 12.8% from current levels.
