- Tesla shares dropped 2.91% despite strong Q2 vehicle deliveries beating estimates
- The company delivered 480,126 vehicles in Q2, up 24.9% from last year
- Demand improved in Europe and stabilized in the US after EV tax credit expiration
Tesla Inc. shares fell in early U.S. trading on Thursday despite the electric vehicle maker reporting stronger-than-expected second-quarter deliveries, as investors locked in gains following the stock's sharp rally over the past four sessions.
Shares of Tesla, Inc. fell 2.91% to $412.94 in early U.S. trading on Wednesday, down $12.36 from the previous close. The stock was trading at 10:14 a.m. GMT-4, according to market data.
Tesla delivered 480,126 vehicles during the April-June quarter, up 24.9% from a year ago and well above analysts' average estimate of 402,776 units, according to Visible Alpha.
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The company is scheduled to report its second-quarter financial results on July 22, after U.S. markets close.
The better-than-expected performance was supported by improving demand in Europe, where Tesla recovered across several key markets after last year's slowdown. Analysts had attributed part of that weakness to brand damage linked to Chief Executive Elon Musk's political activities.
Demand in the U.S. has also shown signs of stabilising after a sharp decline following the expiry of the $7,500 federal EV tax credit at the end of September.
Tesla has continued expanding its Full Self-Driving (FSD) advanced driver-assistance software in Europe, although the feature is currently available in only a limited number of countries. Analysts expect a broader rollout over the coming months to support demand further.
In China, sales of Tesla's locally manufactured EVs have improved this year, aided by the refreshed Model Y, despite intense competition from BYD and other domestic automakers.
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Wall Street has increasingly shifted its focus beyond quarterly delivery numbers as Musk pushes Tesla deeper into artificial intelligence, autonomous driving, humanoid robots and energy infrastructure.
The company also expanded its robotaxi operations after launching a limited commercial service in Austin in June. Musk has said Tesla plans to rapidly scale the service through 2026.
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