Tesla Posts Record Second Quarter Deliveries, Topping Street Forecasts

Tesla  (TSLA) - Get Free Report posted its best ever quarterly delivery tally over the three months ending in June, topping Street forecasts as the impact of CEO Elon Musk's focus on market share gains over near-term profits begins to take hold.

Tesla delivered a record 466,140 new cars over the second quarter, the company said in a Sunday statement, up 83.5% from a year earlier and 10.2% north of the 422,875 tally reached over the three months ended in March.

Analysts' forecasts for deliveries ranged from 440,000 to around 450,000, with Refinitiv pegging the March quarter target at 448,000.

Tesla delivered 446,915 units of its Model 3 sedan and Model Y midsize SUV, as well as 109,225 units of its higher-priced Model S sedan and Model X full-size SUV, the report indicated.

Production rose 86% to 479,700 vehicles as supply chain disruptions and Covid-related closures at its Shanghai factory faded. Model 3/Y production was pegged at 460,211 units with Model S/X production at 19,489 units.

Tesla shares closed at 261.77 each on Friday, after rising 1.66%  on the session to extend their first half surge to around 110%.

China sales likely formed a key component of the record second quarter tally, as China Passenger Car Association (CPAC) data showed said Tesla sold 677,695 cars over the month of May, a 2.4% increase from the previous month and 142% higher than the same period last year, when Tesla's Shanghai gigafactory was still under severe Covid restrictions.

China's EV sales could accelerate further into the summer months, as well, after state media reports suggested last week that the government would extend tax breaks for the purchase of so-called 'new energy' vehicles.

Musk warned investors in late April that Tesla would likely focus on growing sales volumes and extending its lead in key markets over improving profitability. He justified that as a necessary step in its plan to generate recurring revenue, and longer-term earnings growth, from automated-vehicle sales over the coming years.

Tesla posted its thinnest quarterly profit margins in more than two years, linked in part to its relentless 2023 price cuts, with earnings falling 21% from a year earlier to 85 cents a share on revenue of $23.33 billion.

Tesla said it will publish its second quarter earnings on July 19, after the market closes. At present, analysts see June quarter earnings in the region of 79 cents per share, a 4% increase from last year, with revenues rising 42% to $24.1 billion.