Tesla Q2 Deliveries Steamroll Past Estimates As Quarter-End Push Positively Impacts Volume

Tesla, Inc. TSLA reported record second-quarter deliveries, which exceeded the most optimistic forecasts, underlining the strong momentum the company is experiencing.

The Numbers That Matter: Tesla’s quarterly deliveries came in at 466,140 units. This compares to the company-compiled estimate of 446,823 units and the FactSet-compiled estimate of 445,000 units.

Future Fund’s Gary Black, who is in the bullish camp, modeled deliveries of 450,000 units, while RBC Capital Market’s Tony Narayan in a note published Friday said he expects sales of 438,000 units.

Q2’23 Deliveries (units)	Q-o-Q Growth	Y-o-Y Growth
466,140	10.23%	83.02%

Tesla produced 479,700 cars in the second quarter, up 8.8% quarter-over-quarter and 85.5% year-over-year.

Model-Wise Break-Up

Tesla’s best-selling Model 3 and Y cars once again dominated the deliveries numbers. Sequentially, however, Model S/X deliveries jumped about 80% compared to the 8.43% increase in Model 3/Y sales.

Model Type	Units	Proportion of Total Sales
Model 3/Y	446,915	95.88%
Model S/X	19,225	4.12%

Tesla does not break down numbers geographically. RBC’s Narayan estimated deliveries of 168,000 units in the U.S., 158,000 in China, 67,000 units in Europe and 45,000 units in the rest of the world.

The Elon Musk-led EV maker said it continued to transition towards a more even regional mix of vehicle builds, including Model S/X vehicles in transit to EMEA and APAC. Incidentally, the company has localized manufacturing of Model Y/3 vehicles in China and Model Y vehicles in its Giga Berlin plant. The Model S/X vehicles sold in geographies outside of North America is exported from the U.S.

See Also: Everything You Need To Know About Tesla Stock

Why It’s Important: The EV industry is going through difficult times as economic uncertainty continues to weigh on consumer sentiment. Competitive pressure is intensifying, forcing industry players to adopt an aggressive pricing strategy.

Tesla announced steep price cuts in early 2023 as demand plateaued, and this impacted the company’s margin in the first quarter. In a quarter-end push, the Austin, Texas-based company announced discounts of new inventory vehicles across geographies and also gave away freebies, including free fixed-period Supercharging.

What’s Next: The next major catalyst for the company is its second-quarter results, due to be released on July 19. Analysts, on average, expect the company to report earnings per share of $0.79 per share and revenue of $24.08 billion, up 42.20% year-over-year.

Investors will be closely monitoring several key metrics, including trends in demand, the company's financial health with an emphasis on operating margin, advancements in Tesla's full-self driving software, and the status of its recent partnerships with other industry players in the charging network sector, RBC analyst Narayan explained.

Tesla is still on track to hit the full-year delivery goal of 1.8 million units, he added.

Tesla Price Action: Tesla ended Friday’s session at $261.77, up 1.66%, according to Benzinga Pro data. The stock has gained 112.5% year-to-date. The stock is the fourth best-performing S&P 500 stock this year.

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