Tesla, the leading electric vehicle (EV) manufacturer, has seen its stock climb 6% after surpassing analysts’ delivery estimates for the second quarter. Despite doubts about demand throughout the quarter, Tesla managed to deliver 466,140 vehicles, beating Bloomberg’s consensus estimate of 448,351. Additionally, the company produced 479,700 vehicles, exceeding estimates of 456,617.
In terms of specific models, Tesla delivered 19,225 Model S/X vehicles, surpassing expectations of 14,606. Moreover, the EV manufacturer delivered 446,915 Model 3/Y vehicles, exceeding estimates of 437,386. While Tesla’s beat on deliveries and production is impressive, some investors have started questioning the discrepancy between the two numbers and raising concerns about the company’s inventory.
This trend will be closely monitored in future quarters, especially as Tesla continues its global expansion. For the time being, though, the market’s focus will likely remain on the positive news of Tesla’s headline numbers surpassing expectations.
In recent weeks, legacy automakers like Ford and GM, as well as new EV companies like Rivian, have adopted Tesla’s charging standard. This move allows their vehicles to utilize Tesla’s network of Superchargers across the country. As a result, Tesla’s charging standard is slowly becoming the industry standard for EVs.
However, despite these positive developments, both Goldman Sachs and Morgan Stanley downgraded Tesla’s stock. The downgrades were mainly driven by the stock’s significant rally in the past three months, with shares up nearly 75% from their 52-week lows. Furthermore, a tougher pricing environment for new vehicles was cited as a reason for the downgrades. Goldman Sachs noted that the market now reflects a more positive long-term view of Tesla’s growth potential and competitive positioning. Morgan Stanley, on the other hand, maintained its bull case at $450 and bear case at $90 for Tesla’s shares, highlighting the company’s importance in the EV industry.
Despite the downgrades, Tesla’s stock rose by 6% in pre-market trading, erasing the losses incurred after the downgrades from Morgan Stanley and Goldman Sachs.
It remains to be seen how analysts’ opinions will change once again, considering the impressive Q2 delivery numbers released by Tesla. The company’s performance continues to solidify its position as a major player in the rapidly evolving EV market. As Tesla pushes forward, the challenge of balancing supply and demand while expanding globally will be crucial.
In conclusion, Tesla’s ability to surpass delivery estimates for the second quarter has led to a 6% increase in its stock. The company’s consistent growth and expanding presence in the EV market have attracted the attention of both investors and competitors. Despite recent downgrades from Goldman Sachs and Morgan Stanley, Tesla’s long-term potential remains promising. As the EV industry continues to evolve, Tesla’s position as a leader and innovator is undeniable.
