Tesla shares rise after quarterly vehicle deliveries beat Wall Street estimates

Tesla (TSLA) shares jumped more than 8% on Tuesday after the electric car giant reported quarterly vehicle deliveries that beat Wall Street expectations.

The electric-car maker delivered 443,956 vehicles during the second quarter, versus analysts’ consensus estimate of 439,302, according to Bloomberg data.

“In the second quarter, we produced approximately 411,000 vehicles and delivered approximately 444,000 vehicles,” according to a press release. Company statement. By vehicle type, Tesla said it delivered 422,405 models in the third quarter and 21,551 other models.

The total number of vehicles delivered in the second quarter is higher than the 386,810 vehicles delivered globally in the first quarter, but lower than the approximately 466,140 vehicles delivered last year.

Despite the year-over-year decline in deliveries, some analysts pointed to signs that the electric vehicle industry may be holding up better than expected.

“We continue to see room for improvement in sentiment in Tesla shares as well as broader sentiment towards electric vehicles compared to the negative sentiment we have seen over the past six months,” Citi analysts wrote Tuesday.

“From here, focus will shift to Tesla’s Q2 2017 auto gross margins to gauge the price-to-cost equation (Tesla reports July 23), as well as any updates on future product launches,” the note said.

Tesla has faced fierce competition abroad from its Chinese counterparts amid a slump in the electric-vehicle market. In a bid to cut costs, Tesla embarked on a plan to cut more than 10% of its global workforce earlier this year, in what some analysts saw as a sign of tough times ahead.

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During Tesla’s shareholder meeting last month, CEO Elon Musk stressed that near-term demand and sales will struggle as the industry goes through a transition.

“It’s very tough,” Musk said of the electric car market, adding that competitors have also cut back on investments and production of electric cars.

Ahead of Monday’s delivery figures, Wells Fargo analysts noted that the company’s gross margin was likely to be affected amid a crowded market.

During Tesla's shareholder meeting last month, CEO Elon Musk stressed that near-term demand and sales will continue to struggle. (AP Photo/Kirsty Wigglesworth, Pool, File)

During Tesla’s shareholder meeting last month, CEO Elon Musk stressed that near-term demand and sales will continue to struggle. (AP Photo/Kirsty Wigglesworth, Pool, File) (News agency)

“Slowing EV adoption in the US and EU, coupled with fierce competition in China, leaves little immediate leverage to drive volume growth,” wrote Colin Langan and his team, rating the stock “underweight” with a $120 price target.

Tesla hasn’t disclosed its Cybertruck sales, but investors have been able to glean hints about those deliveries based on recalls. Last month, Tesla announced its fourth Cybertruck recall since the vehicle launched late last year. The recall notice said 11,688 trucks were affected.

Before the deliveries print, Tesla shares rose more than 6% on Monday as Chinese companies Li Auto (LI), Nio (NIO) and XPeng (XPEV) reported better-than-expected deliveries.

Tesla shares have risen more than 50% since hitting a 52-week low on April 22. The stock is still down about 10% year-to-date.

Ines Ferry is a senior business reporter at Yahoo Finance. You can follow her on X on @ines_ferre.

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