Tesla reports blowout Q2 deliveries of 480K, easily topping estimates

Tesla (TSLA) reported huge second quarter delivery numbers as the EV maker reported another quarter of recovering sales.

Tesla reported 480,126 deliveries vs 397,466 expected per Bloomberg consensus, up a whopping 25% from a year ago and 34% growth from the first quarter. Tesla sales were hit a year ago following the changeover to the new Model Y and backlash over CEO Elon Musk’s political positions, but seem to be rebounding in a big way

Tesla’s own company-compiled consensus of sell-side analysts, posted to its investor relations site on June 26, saw total deliveries of 406,024 for the quarter, with the median estimate closer to 408,600.

Tesla’s energy and battery deployments hit 13.5 GWh, below Tesla’s own consensus-compilred estimate of 13.8 GWh, up over 50% compared to Q1’s 8.8 GWh.

Tesla stock however sold off on Thursday, in spite of the good delivery numbers.

Deepwater Asset Management managing partner Gene Munster believes the stock sold off for three reasons.

“The biggest was buy on the rumor. The second is a question of how much did high gas prices help the number and third, the ending of the DOGE headwind,” Munster said on X.com. “Bottom line: The EV winter that started in March of 2024 is ending. Even backing out those one time benefits, it still was a monster delivery number, likely up 20% plus vs. up 6% in March.”

The report comes amid a mixed geographic sales picture for the company. In the US, the expiration of federal EV tax credits has hit demand, removing the incentive that made the math work for a lot of buyers. Cox Automotive sees Tesla’s US sales down 20% due to the loss of federal incentives.

Interestingly, Europe is moving in the opposite direction. According to the European Automobile Manufacturers’ Association, Tesla registrations (a proxy for sales) hit 28,610 cars across greater Europe, up nearly 108% from a year earlier. Year to date through May, the company has registered 118,068 vehicles in those markets, a 57% jump. Within the EU alone, May registrations more than doubled, up 152%.

“International strength is doing the heavy lifting with Europe acting as the standout driver and China providing further support,” Deutsche Bank analyst Edison Yu wrote earlier on Tuesday.

That rebound comes despite Elon Musk’s controversial political leanings. In much of Europe, Musk remains a liability, with his politics treated as toxic across wide stretches of the buying public.

But Tesla’s pricing is strong enough that buyers are holding their noses and buying anyway, meaning a good deal trumps bad politics for most buyers.

The larger EV picture across the pond is good for Tesla and other automakers. Battery-electric cars captured 20% of the EU market through May, up from 15.3% a year earlier, as gas and diesel car sales kept sliding.