Tesla’s (TSLA) stock fell 8% on July 2 despite the company reporting strong vehicle deliveries for this year’s second quarter.
The automaker, run by CEO Elon Musk, announced second-quarter vehicle deliveries of 480,126 and electric vehicle production of 451,758 units.
Wall Street had been expecting 406,600 electric vehicle deliveries from Tesla.
The latest deliveries represent a 25% year-over-year increase, and 34% increase compared to this year’s first quarter delivery numbers.
Yet, despite beating forecasts, TSLA stock fell sharply. Shares of Tesla finished trading on July 2 down 7.49%, its worst day in nearly a year.
Tesla doesn’t breakdown its delivery numbers but said that its entry-level Model 3 sedan and Model Y SUV accounted for 97% of its second-quarter deliveries.
Deliveries are the closest approximation to sales reported by Tesla.
Tesla is trying to recover from a consumer backlash against Elon Musk and his politics that hurt the company’s sales over the past year.
Like other automakers, Tesla’s sales have also been negatively impacted by the end of a U.S. federal tax credit for electric vehicles.
To help boost its sales, Tesla has started selling lower-cost versions of its Model 3 and Model Y vehicles and has made its driver assistance systems available in Europe.
Analysts said that Tesla’s second-quarter deliveries likely got a boost from soaring gasoline prices due to the Iran war. However, crude oil prices are now back to pre-war levels.
Tesla is scheduled to report its second-quarter financial results on July 22. TSLA stock has declined 10% this year to trade at $393.45 U.S. per share.
Tech Insider
