Tesla shares jumped about 10% on Tuesday after billionaire Elon Musk’s company reported better-than-expected vehicle deliveries in the second quarter.
The company delivered a total of 443,956 vehicles, down 4.8 percent from the same period last year.
But deliveries beat the consensus estimate of 439,000 units, according to FactSet data.
Tesla’s flagship Model 3 sedan and Model Y SUV accounted for the vast majority of deliveries.
Deliveries of other models, including the futuristic Cybertruck pickup, totaled just over 21,000 units.
The sales slump eased compared to the first quarter, when Tesla’s deliveries fell 8.5% from the same period last year.
Wedbush analyst Dan Ives said in a client note that Tesla’s unexpected delivery upside marked a “major comeback” for the company ahead of a key event in August where it is expected to detail its plans for self-driving cars.
“In short, we believe the worst is over for Tesla and that the EV demand story is starting to shift back to the disruptive tech giant ahead of the historic Robotaxi Day on August 8th,” Ives said.
In mid-morning trading, Tesla shares were up 8.75% to $228.14 per share.
Tesla has struggled all year, facing increasing competition from Chinese company BYD and sluggish consumer demand for electric vehicles.
The company has relied on promotions and price cuts to boost sales, which have put pressure on profit margins.
At the same time, Tesla has been dealing with issues related to the ongoing rollout of its futuristic Cybertruck pickup truck. The company recently issued two physical recalls to address issues with the windshield wipers and trim.
Tesla warned investors in January that delivery growth would “significantly slow” this year. The company also backed away from its goal of shipping 20 million vehicles per year by 2030 in its annual impact report in May.
Despite its recent headaches, Tesla still leads its rivals in global electric vehicle sales, although it was briefly overtaken by BYD last year.
Musk’s company is scheduled to release its full second-quarter results on July 23.
With post wire
