Tesla’s new deliveries continue to underperform compared to previous years. CEO Elon Musk, however, is thinking about the future.
Tesla delivered fewer cars than one year ago for the second quarter in a row, data released by the electric cars giant showed on Tuesday. However, vehicle productions and deliveries slightly exceeded market expectations, sending the stock on a daily rally.
Deliveries amounted to 443,956 compared to an estimate of 439,302. In the same period last year, Tesla delivered 466,140 vehicles.
“In the second quarter, we produced approximately 411,000 vehicles and delivered approximately 444,000 vehicles,” the statement reads. That is respectively 14% and 4.76% less than the second quarter of 2023.
Over 90% of the latest quarter’s sales - 422,405 models - came from just two models, the Model Y and Model 3. Tesla does not disclose the number of Cybertrucks sold, though a recent recall made it possible to estimate around 11,000 delivered so far. The Cybertruck is Tesla’s latest released model and a self-defined “disaster”.
“We dug our own grave with the Cybertruck”, Tesla’s CEO Elon Musk said shortly after its release.
Tesla’s stock jumped 8.81% on Tuesday to almost $230. Tesla had the worst performance among the “Magnificent 7” stocks, falling to its lowest point since January 2023 in April. Tuesday’s rally almost rebounded the entire year-to-date fall, reaching -2.13% since January 2024.
“Tough sledding”
Following the delivery report, Elon Musk said about the EV market that “It’s tough sledding out there,” adding legacy competitors are scaling back investments.
Nevertheless, Tesla faces much higher competition than a few years ago. American and European brands are scaling up their transition, adding hybrid vehicles to the mix as well.
However, the real issue for Tesla remains in China, where a slew of government-subsidized start-ups is saturating the market. Both the United States and the European Union imposed strong tariffs against Chinese EVs fearing an invasion of cheap electric cars in their markets.
With no new competitive models to speak of, Tesla is quickly losing market share to other EV carmakers. On August 8th, Elon Musk will unveil Tesla’s plan for the future. He already announced Tesla’s intention to focus heavily on AI and robotics, working on a new robotaxi model.
Robotaxis is a rather niche market, with some start-ups operating in selected US cities. Alphabet-owned Waymo is currently the most promising robotaxi start-up, offering self-driving taxis in Phoenix, San Francisco, and, in the near future, Los Angeles and Austin.
Tesla would become the largest carmaker to invest in robotaxis. What will happen to its original EV business is a matter of future concern.
