Tesla surprises with better than expected car sales
Tesla sales, which fell significantly earlier this year, may show signs of recovery. In the three months ended June 30, the electric vehicle maker delivered nearly 444,000 vehicles, up 14% from the previous quarter.
That's much more than most analysts expected, although still up nearly 5%. less than for the same period in 2023. Tesla is facing weaker demand as high borrowing rates put pressure on buyers and competition intensifies.
The company has repeatedly cut prices to try to win back buyers and also offered low-cost credit plans. However, success in this direction has been limited.
The company, which announced plans in April to lay off more than 10% of its employees, faced a drop in sales in the first half of the year.
At the beginning of the year, Tesla partially attributed its poor performance to supply shortages due to shipping disruptions in the Red Sea and a suspected arson attack at its plant in Germany.
However, analysts say Tesla needs to refresh its lineup if it hopes to stop rivals from encroaching on market.
The company began selling its cyber truck last year, but that's still only a small part of its business. Its flagship Model 3 sedan was first launched in 2017.
Mr Musk, who recently secured shareholder support for a record pay package worth about $50 billion, outlined a bright future for the company, with driverless technology at its core. driving and automation.
And despite industry concerns that U.S. demand for electric vehicles has been weaker than expected in recent months, the sector is still growing globally.
By More than one-fifth of cars sold globally this year are expected to be electric, including nearly half in China and about a quarter in Europe, according to a recent forecast from the International Energy Agency (IEA).
Wedbush Securities analyst Dan Ives believes the worst is behind Tesla, noting signs of improvement in China, where the government recently announced it would pay cash to people who trade in old cars in a broader boost to the industry.
“Although it was difficult period for Tesla, and the company has made a number of significant cost cuts (by approximately 10-15%) to maintain its bottom line/profitability, it appears that better days have now arrived,” he wrote in a note to investors on Tuesday.
He said he expects the company's upcoming robotaxi presentation in August to spark a new wave of growth.
Shares of the company jumped more than 6% in morning trading Tuesday after that news.