Tesla's Blockbuster Q2 Deliveries: Gene Munster Shares 5 Takeaways — And Why He Rules Out Margin Recovery In June Quarter

Tesla, Inc.’s TSLA record second-quarter deliveries report has left analysts gushing over its strong numbers.

What Happened: Tesla’s price cuts are working in a big way, said Gene Munster, Managing Partner at Deepwater Asset Management.

Among the analyst’s five takeaways are:

• June quarter year-over-year deliveries growth accelerated from 36% in the first quarter to 83% in the second quarter
• The year-over-year delivery growth marked the fastest growth rate since June 2021
• Deliveries growth averaged 50% over the past seven quarters
• Production growth aligns with delivery growth, signaling inventory levels remain stable
• Tesla’s growth potentially outpaces legacy automakers

Munster expects the top six legacy automakers to report average sales growth of 10-15% for the second quarter.

See Also: Everything You Need To Know About Tesla Stock

Margin Recovery Unlikely: Munster expects second-quarter auto gross margin, excluding credits, to align with March 2023’s 19%, or 50 basis points lower.

“The delivery number is likely too strong to delivery upside surprise to margins in June [quarter],” he said.

Munster said that favoring deliveries over maximizing margins is the right approach at this stage of the electric vehicle market. This would put more earnings pressure on other car makers as they make the switch to electrification, he added.

Tesla ended Friday’s session at $261.77, up 1.66%, according to Benzinga Pro data.

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