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

Zinger Key Points
  • Tesla's Q2 deliveries growth of 83% marked the fastest growth rate since June 2021.
  • Gene Munster expects Tesla's year-over-year sales growth to markedly outperform the average growth of the legacy automakers.

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.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Tesla’s Record Q2 Deliveries Will Send ‘Bears Into Hibernation,’ Says Analyst: 2 Reasons For The Outperformance

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorEquitiesNewsTop StoriesDeepwater Asset Managementelectric vehiclesEVsGene Munstermobility
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!