Tuesday’s sales numbers signal a “rebound performance” for Tesla after a disastrous first quarter, Wedbush Securities analyst Dan Ives said.
“After six months, Mojo is back in the Tesla story,” he said.
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The consensus was that Tesla would miss Wall Street analysts’ estimates, making second-quarter sales “a surprise to even the most bullish investors.” Company watchers are weighing the effects of higher interest rates and weak consumer sentiment about electric vehicles.
Tesla is facing a soft electric-vehicle market. Sales of electric vehicles are still growing faster than gasoline vehicles, but Tesla and other automakers last year had to offer discounts and incentives in an effort to attract a broader market beyond EV adopters.
Earlier this year, Tesla reported only one other quarter of annual sales declines in 2020 at the height of pandemic lockdowns. Tuesday’s report marks the first time the company has seen annual sales declines in back-to-back quarters, but the company has hinted at the trend before — during a January earnings call when Chief Executive Elon Musk said Tesla is investing in the next-generation vehicle, which the company will begin building in 2025. , said this year will experience “a particularly low growth rate”.
In April, the company said it delivered 387,000 vehicles, up more than 20 percent from the previous quarter and down 8.5 percent year-over-year. In the same month, Tesla saw a 9 percent decline in annual revenue in the first quarter.
Automakers competing with Tesla in the EV market saw strong quarterly sales results.
General Motors said Tuesday it sold 696,000 vehicles in the quarter, up 0.6 percent year-over-year, marking the company’s best quarterly sales in more than three years. GM’s EV deliveries are up 40 percent from a year earlier.
EV and hybrid sales also fueled success for Toyota. The company sold more than 247,000 electrified vehicles in the second quarter, representing 40 percent of total deliveries for the period and a 63 percent year-over-year increase. Across all vehicle categories, Toyota sold 622,000 in the quarter, up 9 percent year-over-year.
