Stock price soared by over 10%, Tesla continues to write the "myth" of electric vehicles
Tesla's second-quarter delivery results exceeded expectations, with the stock price soaring by over 10%. The company delivered 443,956 vehicles, higher than the expected 438,000, with production exceeding sales, easing pricing pressures. Tesla stated that it deployed 9.4 gigawatt-hours of battery storage in the quarter, reaching a historical high. Analysts raised their target stock price, alleviating concerns about soft demand for Tesla. Prior to the delivery results announcement, Tesla's stock price had risen for five consecutive days by about 15%. This increase raised the risk of disappointing delivery results. Overall, Tesla's delivery performance was strong, and the market holds an optimistic view of its prospects
Tesla (TSLA.US) delivered better-than-expected results in the second quarter, bringing a pleasant surprise to investors.
According to the Securities Times app, given the current market sentiment surrounding electric vehicles, investors may be curious about how Tesla achieved this. In fact, this can be attributed to market expectations, market performance, and the company's own initiatives.
The company delivered 443,956 vehicles in the second quarter, significantly higher than the expected 438,000 vehicles. Wall Street estimates ranged from 420,000 to 425,000 vehicles. Tesla produced approximately 411,000 vehicles during the quarter, which is also a positive sign. Exceeding sales over production means inventory reduction, easing the pressure for price cuts.
Another piece of good news is that Tesla stated it deployed 9.4 gigawatt-hours of battery storage in the quarter, its best quarter ever. There is almost nothing to criticize in this delivery report.
At Tuesday's close, Tesla surged over 10% to $231.26.
CFRA analyst Garrett Nelson wrote after the report was released, "We have raised our 12-month target price by $20 to $250, as Tesla's data greatly alleviates concerns about weak demand for electric vehicles."
Nelson rates Tesla stock as "buy," while Wedbush analyst Dan Ives also gives a "buy" rating with a target price of $275 per share. Ives said, "In short, we believe Tesla's electric vehicle demand story is back on track, and the worst is behind us ahead of the historic Robotaxi Day on August 8."
Before Tuesday's trading began, Tesla's stock had risen for five consecutive days, gaining about 15% during this period. This increase raised the risk of disappointing delivery results. However, this did not happen, for several reasons.
Firstly, although Tesla's deliveries fell by about 5% year-on-year, marking the second consecutive quarter of decline, the situation was better than expected. Global electric vehicle sales growth slowed at the beginning of 2024.
Secondly, Wall Street estimates tend to decrease before the release of any quarter. Several weeks ago, analysts expected deliveries to be around 440,000 vehicles. This time, the market became overly anxious about expectations before the quarter, lowering delivery expectations and making it easier for Tesla to exceed them.
Foreign media pointed out that any number above 420,000 should be enough to support the stock price. The second-quarter financial report will be released a few weeks after the delivery news, with greater potential to impact stock prices. After the past four quarterly reports were released, Tesla's stock averaged a 11% fluctuation As of Monday's closing, Tesla's stock has fallen by 15% this year, while the S&P 500 index has risen by about 15%