- Tesla’s sales fell about 5% in the second quarter.
- The results weren’t as bad as analysts had expected.
- Tesla shares rose more than 8% on the news.
Tesla’s sales fell for the second consecutive quarter, dropping about 5% from the same period a year ago.
The drop in deliveries is the latest sign that an industry-wide slowdown in the electric vehicle industry is finally starting to affect Elon Musk’s Tesla, but Tuesday’s numbers weren’t as bad as some analysts had expected, sending the company’s shares up more than 8%.
Wedbush’s Dan Ives, a longtime Tesla bull, called the second-quarter sales results a “major comeback” for the EV company.
“In short, we believe the worst is over for Tesla and EV demand is beginning to recover,” Ives wrote in a note to clients.
Tesla reported second-quarter sales of 443,956 vehicles on Tuesday morning, down about 4.7% from the same period a year ago but beating Wall Street expectations.
Analysts surveyed by Bloomberg had expected Tesla to deliver 439,302 vehicles in the third quarter, down about 6% from the same period last year.
Tesla is valued on a curve
When assessing Tesla’s performance, it’s important not to get too caught up in the hard numbers — at least, that’s what the company’s most ardent supporters say.
Tesla reported its worst first-quarter deliveries in years and profits that fell far short of expectations, but its shares reversed weeks of steep declines in the days following the earnings report.
Despite a long list of broken promises, Musk has maintained investor confidence by consistently disappointing expectations when times get tough — see, for example, the Model 3, which was once thought to be a flop.
Tesla was hit hard by a slowdown in the EV market earlier this year, but Wall Street’s metrics for Tesla’s success no longer seem to be tied to the company’s growth.
On the contrary, as long as the company’s performance isn’t as bad as we all expect and Musk presents Wall Street with a plan for further growth, Musk and his EV company stand to get handsomely rewarded.
More recently, the plans hinge on an artificial intelligence-powered robotaxi fleet, with Musk set to unveil details in August.
Tesla is scheduled to report its second-quarter results after the market closes on July 23.
