Tesla Deliveries Slump but Stock Bounces Back
Tesla shares climbed in early trading after the electric vehicle maker said quarterly deliveries fell less than expected.
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@Tesla shares climbed in early trading after the electric vehicle maker said quarterly deliveries fell less than expected.
The stock rallied 9.5%, on track for its highest close since January #Tesla #stocks pic.twitter.com/1p7hkFJHmX— The_Journalbiz (@the_journalbiz) July 2, 2024
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The stock rallied 9.5%, on track for its highest close since January if it holds gains. The shares were the best performers in the S&P 500.
Shares jump following better-than-expected results, the company remains the world’s top electric car seller amid increased competition
Tesla slid for a second straight quarter but not as much as expected, lifting the company’s stock price and keeping Tesla ahead of rival BYD as the world’s largest seller of electric vehicles.
The company said it delivered 443,956 vehicles globally in the three months, a 4.8% decline from the same quarter a year ago. The decline comes as Tesla continues with lukewarm demand for its cars and intensifies competition.
Tesla’s slowing growth underlines the challenges facing the broader industry. Other carmakers have rolled out dozens of new electric models, but demand has fallen short of initial expectations, despite falling prices and a spurt of low-interest and lease deals.
The better-than-expected results boosted Tesla’s stock price by 9% in early afternoon trading. Before the news, Tesla’s share price had declined 16% this year.
Analysts pointed to a decline in manufacturing production in the quarter as a positive for Tesla, where slowing sales had led to a buildup of unsold vehicles. The company built 410,831 vehicles, a 14% reduction over the prior year.
Chief Executive Elon Musk is facing his greatest test in years as he tries to juggle the need to spend money on developing new and more affordable models while investing in pricey bets on robots and self-driving technology.
