Stifel managing director Stephen Gengaro says there are ‘multiple layers’ to Tesla and its stock valuation.
Tesla delivered more of its electric vehicles than expected in the second quarter.
The Elon Musk-run company said Tuesday it completed 443,956 vehicle deliveries during the quarter, including 422,405 across its Model 3 and Ys and 21,551 across its other EV offerings.
The total deliveries represented nearly 6,000 more than LSEG analysts had predicted ahead of the EV maker’s announcement, according to Reuters.
New Tesla electric vehicles fill the car lot at the Tesla retail location on Route 347 in Smithtown, New York, on July 5, 2023. (Photo by John Paraskevas/Newsday RM via Getty Images / Getty Images)
Investors reacted positively to the news, with Tesla’s stock posting an over 8% increase. Tesla shares are down about 11% for the year.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Compared to the same three-month period last year, Tesla’s deliveries fell nearly 4.6%. Its deliveries also experienced an 8.5% year-over-year decline in the first quarter.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 231.26 | +21.40 | +10.20% |
In April, Musk said Tesla “navigated several unforeseen challenges” like disruptions stemming from the Red Sea attacks and a factory arson incident “as well as the ramp of the updated Model 3 in Fremont” during the first quarter.
Elon Musk, chairman and CEO of Tesla Motors Inc., gestures as he speaks during a news conference prior to unveiling the Model X sport utility vehicle during an event in Fremont, California, on Tuesday, Sept. 29, 2015. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
The EV adoption rate globally is under pressure, and a lot of other auto manufacturers are pulling back on EVs and pursuing plug-in hybrids instead,” he said, noting it was a strategy he didn’t agree with.
MUSK DISHES ON TALKS WITH TRUMP DURING TESLA SHAREHOLDER MEETING
There has also been significant EV competition in China.
In addition to deliveries, Tesla on Tuesday disclosed how many vehicles it built in the second quarter.
That came in at 410,831 for the quarter, a nearly 14.4% decrease from the same period last year.
A Tesla corporate logo hangs on the front of their store in Santa Monica on April 10, 2023 in Los Angeles. (Photo by Gary Hershorn/Getty Images / Getty Images)
Like it usually does, the company released the data a few weeks before it is slated to publish its second-quarter financial results on July 23.
CLICK HERE TO READ MORE ON FOX BUSINESS
Tesla held its annual meeting – which was closely watched by investors and Wall Street alike – earlier in the month.
At the meeting, shareholders voted to switch the EV maker’s incorporation to Texas. They also approved the reinstatement of Musk’s 2018 pay package, which Tesla is still fighting for in court.
Eric Revell contributed to this report.
Read More: Tesla, deliveries, Elon Musk | Fox Business