Tesla stock soars 6% after EV maker’s impressive sales numbers
Tesla Shares Surge on Strong Second Quarter Delivery Numbers
Shares of Tesla saw a significant jump of over 6% in trading on Wall Street on Monday following the release of the company’s better-than-expected delivery numbers for the second quarter. The electric car manufacturer, headed by Elon Musk, reported delivering a total of 466,140 vehicles between April and June, representing a 10% increase from the previous quarter and a remarkable 83% surge compared to the same period last year. Additionally, Tesla was able to narrow the gap between production and deliveries, reducing it to 13,560 vehicles for the second quarter from 17,933 in the previous three months.
Analysts now project that Tesla, the world’s leader in electric vehicles, will deliver a notable 1.8 million cars this year, surpassing its previous record of 1.3 million deliveries in 2022. This positive outlook comes after Tesla implemented price cuts around the world earlier this year, slashing prices by up to 20% in a move that ignited a price war amongst competitors. Notably, the basic Model Y, which was originally priced at $65,990, now has a price tag of $54,990. These price reductions were a direct response to Tesla’s failure to meet Wall Street’s delivery estimates for 2022.
The success of Tesla’s price cuts in stimulating sales growth has been widely acknowledged. Gene Munster, managing partner at investment firm Deepwater Asset Management, praised the impact of the price reductions, stating, “Tesla’s price cuts are working in a big way.” He also noted that the growth in deliveries seen in this quarter represents a significant step up compared to the average growth of the previous seven quarters, which stood at 50%.
Despite the positive reaction from the market, there were some skeptics who downplayed the significance of Tesla’s delivery numbers. Renowned short-seller Jim Chanos tweeted that the market had already priced in these figures. “Again, ‘blown away’ is a 4% beat on deliveries with huge price cuts? The $800B valuation might just be discounting that…$TSLA,” he wrote. Chanos has a history of skepticism towards Tesla, having previously placed bets against the stock back in 2016 and more recently purchasing bearish put options.
Tesla’s stock has been on an upward trajectory this year, surging by 113% so far. However, it is important to note that even with this significant increase, the stock is still trading above a third below its peak price of over $400 per share in late 2021.
Tesla’s success in the second quarter has fueled optimism among investors and analysts alike. With the company’s delivery numbers surpassing expectations and market demand remaining strong, Tesla is poised to continue its growth as a leader in the electric vehicle market.
FAQs:
1. How much did Tesla’s stock surge following the release of its second quarter delivery numbers?
Shares of Tesla jumped by more than 6% in trading on Wall Street after the company reported better-than-expected delivery numbers for the second quarter.
2. How many vehicles did Tesla deliver in the April to June period?
Tesla delivered a total of 466,140 vehicles in the second quarter, representing a 10% increase from the previous quarter and an 83% increase compared to the same period last year.
3. What was the gap between Tesla’s production and deliveries in the second quarter?
The gap between production and deliveries narrowed to 13,560 vehicles in the second quarter, down from 17,933 in the previous three months.
4. How many vehicles is Tesla projected to deliver this year?
Analysts project that Tesla will deliver 1.8 million vehicles this year, surpassing its previous record of 1.3 million deliveries in 2022.
5. What sparked a price war after Tesla’s failure to meet Wall Street’s delivery estimates for 2022?
Tesla slashed prices worldwide by up to 20% in January, sparking a price war amongst competitors after the company failed to meet Wall Street’s delivery estimates for 2022.
6. How has Tesla’s stock performed this year?
Tesla’s stock has surged by 113% this year, although it is still trading more than a third below its peak price of over $400 per share in late 2021.
Impressive Sales Figures Propel Tesla Stock to Soar 6%
Shares of Tesla surged by over 6% in trading on Wall Street on Monday following a strong second-quarter delivery report. The electric car company, led by Elon Musk, delivered 466,140 vehicles in the April to June period, surpassing expectations and representing a 10% increase from the previous quarter and an impressive 83% rise from the same period last year. Additionally, Tesla narrowed the gap between production and deliveries, with 13,560 fewer cars in inventory compared to the previous quarter.
Analysts project that Tesla, as the global leader in electric vehicles, is on track to deliver 1.8 million vehicles this year, surpassing its previous record of 1.3 million in 2022. The increase in deliveries comes on the heels of Musk’s decision to lower prices by up to 20% globally in January, which sparked a price war after the company fell short of Wall Street’s delivery estimates for 2022. For example, the base Model Y, previously priced at $65,990, now costs $54,990. In January, Musk confidently stated that Tesla could achieve 2 million vehicle deliveries in 2023, a 52% increase from the previous year.
Following the positive delivery numbers, Tesla’s stock soared, pushing the company’s market capitalization close to surpassing the $900 billion mark. This success validates Musk’s strategy of price reductions to stimulate sales growth, according to Gene Munster, managing partner at investment firm Deepwater Asset Management. Others, however, were less impressed, with short-seller Jim Chanos suggesting that Tesla’s valuation already accounted for the strong delivery numbers and price cuts.
Chanos, who famously bet against companies like Enron and WorldCom, has been a vocal critic of Tesla for several years. Although Tesla’s stock has experienced a significant 113% increase this year, it is still trading more than a third below its peak price reached in late 2021. As Tesla’s performance continues to draw attention and debate, the company remains a key player in the electric vehicle market.