ZINGER KEY POINTS
- The EV market fundamentals have faltered amid the economic uncertainty engendered by rising inflation and higher interest rates.
- Tesla shares have been underperforming the broader market since 2023 but the downtrend has stalled in recent sessions.
Editor’s Note: This article has been updated to correct the number of Other Models delivered.
Electric vehicle maker Tesla, Inc. reported Tuesday ahead of the market open second-quarter deliveries that came in ahead of the consensus estimate. The stock is reacting to the report with a move to the upside.
Breaking Down Numbers:
Texas-based Tesla reported second-quarter deliveries that declined from a year ago, although improving from the first quarter. Here’s how the numbers compare to the consensus and prior periods:
Q2’24 | Consensus* | Company-compiled Consensus | Y-o-Y Change | Q-o-Q Change | |
| Deliveries | 443,956 | 439,300 | 437,800 | -4.76% | +14.77% |
| Production | 410,831 | N/A | N/A | -14.36% | -5.20% |
*Bloomberg-compiled via Gary Black’s post
Analysts and forecasters revised their estimates in recent weeks, given the ongoing slowdown in the EV market. Tesla forecaster Troy Teslike issued a final delivery and production forecast of 423,000 and 416,823 units, respectively. Wedbush analyst Daniel Ives predicted a likely in-line number, pinning his hopes on a mini end-of-the-quarter rebound in China, one of Tesla’s key markets.
China Passenger Car Association data released Tuesday showed Tesla’s June made-in-China sales coming in at 71,007 units, taking the total for the quarter to 205,747 units. Excluding exports, domestic sales for the first two months of the second quarter totaled 86,636 units.
The vehicle category-wise breakdown of deliveries is as follows:
| Q1’24 | Y-o-Y Change | Q-o-Q Change | |
| Model 3/Y | 422,405 | -5.48% | +14.23% |
| Other Models* | 21,551 | +12.09% | +26.57% |
*includes Model S/X/Tesla Semi/Cybertrucks
Tesla hasn’t reported standalone numbers for Cybertrucks ever since its rollout in late 2023.
Energy Storage:
As Tesla’s core EV business stutters, analysts have begun focusing on the potential of the Elon Musk-led company’s ancillary businesses and chief among them is its energy storage unit. Tesla said on Tuesday it deployed 9.4 Gigawatt-hours of energy storage products in the first quarter compared to 4,053-MWh at the end of the first quarter.
RBC Capital markets analyst Tom Narayan said in a note in March that Tesla’s Megapack utility-grade battery storage business is worth $120 billion, potentially surpassing the contribution from the core vehicle-manufacturing business.
Looking Ahead:
Tesla’s next big catalyst is the second-quarter earnings release, which has been scheduled for July 23, 2024. Analysts, on average, expect the company to report earnings of 59 cents per share on revenue of $24.03 billion. This compares to the year-ago earnings of 91 cents per share and revenue of $24.93 billion.
The forecasted earnings drop reflects demand that continues to slow and the margin impact of the price cuts and other promotions.
Tesla is scheduled to host its Robotaxi Day on Aug. 8, which could be another market-moving event that could shed more light on the status of the full self-driving technology.
In premarket trading on Tuesday, Tesla climbed 4.49% to $219.28, according to Benzinga Pro data. So far this year, the stock has fallen 15% compared to the S&P 500’s 14.8% advance.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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Originally Posted July 2, 2024 – Tesla Deliveries Fall For Second Straight Quarter, But Stock Takes Off As Q2 Numbers Exceed Expectations (CORRECTED)
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