Never bet against Elon Musk. With so many advances coming about thanks to AI, Tesla robots and cars will soon be adding billions more to the stock price. Just my opinion…
Tesla’s stock experienced a notable rise of approximately 5% in early trading on Tuesday, following the announcement of vehicle delivery numbers for the second quarter that surpassed Wall Street forecasts. The electric vehicle (EV) manufacturer reported a total of 443,956 vehicles delivered, surpassing the Bloomberg consensus estimate of 439,302 deliveries.
#BREAKING Business #News 💵: #Tesla Beats Q2 Delivery Expectations, Stock Surges.
Tesla’s Q2 2024 production and delivery numbers exceeded Wall Street estimates, with a …14.8% increase from Q1 2024…
Full Article 👉 https://t.co/OamR4GXkI8 pic.twitter.com/lraWibcUq0
— paperboi.news.business (@ppbn_business) July 2, 2024
The company issued a statement detailing the breakdown of the deliveries, including 422,405 of its Model 3/Y vehicles and 21,551 of its other models. This report comes amidst challenging market conditions, particularly with increased competition from Chinese EV manufacturers and a generally sluggish EV market.
Tesla has responded to these market challenges by implementing cost-cutting measures, notably reducing its global workforce by more than 10%. This move has been interpreted by some industry analysts as an indication of potential difficulties ahead. During a recent shareholder meeting, Tesla’s CEO Elon Musk addressed these issues, acknowledging the tough market conditions and the scaling back of investments and production by other EV companies.
Intrigued about the future of Tesla’s stock? Despite beating delivery estimates, analysts remain cautious. Could $TSLA reach the $300 mark? Get the insights from @Tesla and Wall Street experts. #EV #StockMarket https://t.co/WrQ3CSLQIZ
— Finbold (@finbold) July 2, 2024
Analysts from Wells Fargo highlighted concerns prior to the release of the delivery figures, noting the impact of stagnant EV adoption rates in the U.S. and EU, and aggressive competition in China, on the company’s gross margins. The firm maintains an Underweight rating on Tesla with a target price of $120.
Additionally, Tesla does not separately report sales figures for the Cybertruck. However, clues about its deliveries can be inferred from recall notices, including a recent announcement affecting 11,688 trucks, marking the fourth recall for the Cybertruck since its launch late last year.
Tesla stock pops 10% as deliveries beat estimates and Wall Street sees stronger days ahead https://t.co/zFgo6HmHW7
— Jazz Drummer (@jazzdrummer420) July 2, 2024
The stock’s overall performance has been positive, with a rally of over 50% since hitting a 52-week low on April 22. Despite this, Tesla shares are still down about 10% year to date, reflecting ongoing investor concerns about the company’s future in a competitive and transitioning market.
Key Points:
i. Tesla’s stock rose by about 5% following a quarterly report where vehicle deliveries exceeded Wall Street predictions.
ii. The company delivered 443,956 vehicles in the second quarter, beating the anticipated 439,302.
iii. Despite strong delivery numbers, Tesla is facing increased competition, particularly from Chinese EV manufacturers, and a slowdown in the global EV market.
iv. Tesla has made significant workforce reductions as part of cost-cutting measures in response to the challenging market conditions.
v. The company’s stock has rallied significantly from its 52-week low despite being down year-to-date, highlighting volatile market conditions and investor caution.
Susan Guglielmo – Reprinted with permission of Whatfinger News
