Tesla's quarterly deliveries are down. Wall Street remains optimistic

Business Insider

Tesla’s deliveries fell 13.5% in Q2, its biggest drop ever, amid industry headwinds and brand challenges. Still, analysts see signs of recovery with a robotaxi launch and a boost from the Model Y refresh.

Transcript

00:00Tesla just had its biggest quarterly decline ever. The company delivered about 384,000 electric

00:06vehicles in the second quarter, which is a 13.5% decrease from the same period last year,

00:11where it delivered about 444,000 EVs. The latest report follows a rough first quarter for Tesla,

00:17which was its lowest quarter since 2022, marking a 13% year-over-year decrease.

00:23Tesla also experienced its first year-over-year delivery decline in 2024.

00:27But I did speak to several analysts who don't see this as the worst news for Tesla given all of

00:32the challenges it's gone through over the past few months. Tesla has been dealing with an industry-wide

00:37EV slowdown, increasing competition, backlash against Elon Musk's political actions, and an

00:43assembly line changeover for the refresh model Y, which stalled production. While Musk did recently

00:49step down from his political stint at the White House, the extent of Tesla's brand damage isn't

00:53clear. Tesla's stock got a boost after Musk stepped away from his work with Doge, but soon

00:58after, Musk started a highly public feud with Trump, and Tesla's stock has seen volatile swings

01:03in recent weeks as the two have traded insults. Meanwhile, Tesla's international sales seem

01:08to also be facing a slump. Tesla's EV sales in China decreased by 18% between January and May

01:14as its rival BYD surged. And Tesla's EU market share dropped year-over-year from 1.6% to 0.9% in May.

01:22There's still some good news for Tesla. According to data from China's Passenger Car Association,

01:28the number of cars shipped from Tesla's Shanghai factory rose slightly in June compared to last

01:32year, halting an eight-month run of year-over-year sales declines. Tesla's Model Y refresh also led to

01:38an increase in new vehicle sales in April as other manufacturers decreased. And the company just

01:44launched its Robotaxi service in Austin, as promised. Tesla's stock is up over 4% following the release

01:50of the report. To read more on Tesla, Musk, and the Robotaxi launch, head to businessinsider.com.

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