Tesla (NASDAQ: TSLA) experienced a significant surge of over four percent on Wednesday morning following the announcement of better-than-expected deliveries for the second quarter. The company reported that it had delivered 384,122 vehicles in Q2, which was very close to the Wall Street consensus estimate of 385,000 cars.
Many were surprised by the strong delivery numbers, as expectations within the Tesla community ranged from 340,000 to 360,000 vehicles. Despite concerns about production pauses at Gigafactory Texas and the ramp-up of the new Model Y configuration, Tesla managed to meet expectations and reassure investors.
The positive delivery report led to a 4.5 percent increase in Tesla shares by noon on the East Coast. It is anticipated that Tesla will maintain its delivery numbers from the past two years, hovering around the 1.8 million mark since 2023. The company is on track to unveil more affordable vehicle models later this year, as indicated by previous announcements.
Analyst Dan Ives from Wedbush highlighted Tesla’s rebound in China and the global ramp-up of the Model Y as contributing factors to the company’s strong performance in Q2. He emphasized Elon Musk’s renewed focus on Tesla following his return from politics, predicting accelerated growth in the coming years. Ives maintained his price target of $500 and an ‘Outperform’ rating for Tesla stock.
Looking ahead, investors are hopeful for continued growth in Tesla’s delivery figures over the next few quarters. If Tesla can introduce affordable models by the end of the year, the company may surpass its delivery numbers from previous years. The emphasis on autonomous technology, Full Self-Driving (FSD), and robotics also bodes well for Tesla’s future prospects.
In conclusion, Tesla’s latest delivery report has instilled confidence in investors and analysts alike, setting the stage for continued growth and innovation in the electric vehicle market. With a strong leadership team and a focus on technological advancements, Tesla remains poised for success in the years to come.