• Tesla sold 443,956 and built 410,831 cars last quarter
• Automaker posts first quarterly streak of declines since 2012

Deliveries & Sales Q2’2024

All eyes were on Tesla deliveries since they are the closest approximation as they provide the closest estimate to the company’s sales figures.

Tesla announced its production statistics for the second quarter, surpassing Wall Street’s expectations.

Analysts had forecasted deliveries of 439k vehicles for the period ending June 30^[1].

Although the total deliveries in Q2 dropped by 4.8% compared to 466k units a year ago, they increased by 14.8% from the previous quarter.

The electric vehicle company delivered 444к vehicles in Q2, or 33к more than it produced, helping to reverse a buildup of unsold vehicles or backlog.

These unexpectedly strong results led to a 10% increase in Tesla’s stock price by the close of trading on Tuesday. Before the news, Tesla’s share price had declined 16%^[2] for the year.

Source: Tesla

Tesla categorizes its sales into two main groups: Model 3 and Model Y vehicles.

The current Tesla lineup features the widely popular Model Y crossover utility vehicle, the Model 3 sedan, the Model X SUV, the flagship Model S sedan and the newly introduced Cybertruck pickup.

The majority, or 95%, of Tesla’s revenues were from the more affordable Model 3 and Model Y vehicles.

The company sold just 21,551 units of its pricier models, which include the Model X, Model S, and the newly introduced Cybertruck.

Tesla Growth Slowdown

Tesla’s growth has slowed compared to recent years.

Source: Tesla

The company has experienced a year-over-year drop in deliveries for the second consecutive quarter.

This marks Tesla’s first year-over-year drop in deliveries since Q2 2020. The last time Tesla reported back-to-back declines was in 2012.

Both supply and demand challenges have troubled the electric vehicle manufacturer.

In April, CEO Elon Musk announced plans to reduce the workforce by as much as 20%, including cuts in the sales department, which may have impacted delivery figures.

Tesla attributed the first-quarter slowdown to a suspected arson incident at its Berlin factory and shipping delays caused by Red Sea conflicts.

Despite fewer external disruptions in the past three months, the company is struggling to expand with its older vehicle models.

The decline in sales also correlates with Tesla’s aging lineup.

Musk announced that Tesla plans to introduce new, more affordable models by early next year, although specific details have been scarce.

In response to increasing competition from other major automakers, Musk has been reducing prices for Tesla vehicles.

However, these price cuts have also led to lower profits, with the company’s operating margins dropping to 5.5% in the first quarter of this year from 16.8% in 2022. Musk is implementing cost-cutting measures to improve margins and has announced plans to lay off more than 10% of Tesla’s global workforce.

What’s Next for Investors

Tesla is set to announce its second-quarter earnings on July 23 and will host its fully autonomous robotaxi event on August 8.

Additionally, Musk has stated that Tesla plans to start limited production of its Optimus robot next year.

Investors can long Tesla using our 1x Tesla, 2x Tesla, 3x Tesla.

Alternatively, traders can short Tesla using our -1x Tesla, -2x Tesla, -3x Tesla.

1. Factset
2. Tradingview