Tesla Q2 Deliveries Hit Record High, May End 2-Year Sales Decline

AUSTIN, Texas (Reuters) - Electric vehicle maker Tesla Inc. announced its delivery data today. Benefiting from recovering demand in the European market, its second-quarter deliveries reached a record high for the same period, far exceeding Wall Street expectations and further fueling market anticipation that Tesla may end its two-year sales decline in 2026.

Reuters reported that the strong performance of Tesla's core electric vehicle business provides significant support for CEO Elon Musk's ambitious, high-cost development plans in areas such as autonomous driving and artificial intelligence (AI). These two areas are also the primary drivers of Tesla's current market value of approximately $1.6 trillion.

In the second quarter of this year (April to June), Tesla delivered a total of 480,126 vehicles, setting a record high for any second quarter, an increase of about 25% compared to the same period last year. This figure significantly surpassed the average analyst estimate of 402,776 vehicles compiled by analytics platform Visible Alpha.

However, Tesla's stock closed down 7.49% at $393.45 today. Analysts and investors stated that the market's optimistic expectations had already been reflected in the stock price, as it had accumulated a 12% gain earlier in the week.

Tesla's recovery in the European market is mainly attributed to rising fuel prices, government subsidies for electric vehicles, accelerated electrification of corporate fleets, and a gradual fading of consumer backlash stemming from Musk's far-right political stances last year.

Seth Goldstein, an analyst at Morningstar, said, "I believe the significant growth in the European market is the most important factor driving Tesla right now. US sales are still declining, but the drop is smaller than the overall US EV market; the Chinese market is showing slight growth."

He had originally expected Tesla to experience a full-year sales decline for the third consecutive year, but after seeing the latest data, he commented, "Under current circumstances, it will be very difficult to see an annual decline again this year."

Furthermore, Tesla's development focus is no longer limited to vehicle manufacturing. Capital expenditures are projected to exceed $25 billion in 2026, nearly triple the $8.5 billion spent last year. This investment will primarily go towards expanding AI infrastructure, increasing battery production capacity, building the Cybercab autonomous taxi production line, and developing the Optimus humanoid robot.

Tesla continues to roll out its Full Self-Driving (FSD) system in Europe. Although it is currently only available in a few countries, analysts expect its scope of service to expand further in the coming months, which will help boost market demand.

Tesla also continues to expand its operations after launching a limited commercial Robotaxi service in Austin, Texas, in June. Musk stated that the company plans to rapidly expand its Robotaxi business in 2026.

Tesla is scheduled to announce its second-quarter earnings report after the US stock market closes on July 22. (Compiled by Xu Rui-Ruicheng) 1150703

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