Tesla shares rise on better-than-expected Q2 deliveries report

Tesla shares jumped on Tuesday after the company posted second-quarter vehicle production and deliveries numbers that beat analyst expectations.

Here are the key numbers:

Total deliveries Q2 2024: 443,956 vehicles

Total production Q2 2024: 410,831 vehicles

Analysts expected Tesla deliveries to hit 439,000 in the three months ending June 30, according to a consensus of estimates compiled by FactSet StreetAccount. The total number of deliveries in the second quarter fell 4.8% from 466,140 a year earlier but rose 14.8% from the first quarter.

The stock rose 8.8% to $228.29 in morning trading. Before the report, Tesla shares were down 16% in 2024.

Deliveries are the closest approximation of sales disclosed by the electric vehicle maker. Tesla groups deliveries into two categories — Model 3 and Model Y vehicles, and all other vehicles — but doesn't report numbers for individual models or specific regions.

Tesla's current lineup includes its popular Model Y crossover utility vehicles, Model 3 sedans and the new Cybertruck pickups, as well as the Model X SUV and flagship Model S sedan.

In April, Tesla reported a drop of 8.5% in first-quarter deliveries to 386,810, the first annual decline since 2020. Weeks later the company reported a 13% decline in year-over-year revenue for the quarter, "primarily due to lower average selling price."

Sluggish sales were in part the result of temporary factory shutdowns initiated in response to an alleged arson attack at Tesla's factory in Germany, as well as shipping delays following Red Sea conflicts, Tesla said.

But the sales drop also correlated with Tesla's aging lineup of vehicles, increased competition from other EV makers especially in China, and brand erosion that one recent survey attributed partly to CEO Elon Musk's "antics" and "political rants."

Tesla has offered a range of discounts and other incentives this year to try to spur sales.

In China, Tesla is currently offering a zero-interest loan as an incentive to get customers to buy a Model 3 or Model Y by July 31. According to its 2023 annual filing, Tesla generated about $21.75 billion of its overall revenue from China, representing 22.5% of total sales.

Colin Langan, an analyst at Wells Fargo, issued a report on Monday, saying the firm sees "declining delivery growth driven by lower demand & diminished return on price cuts." He recommends selling Tesla shares.

Wells Fargo expects automotive gross margins at Tesla, not including environmental credits, to fall given the "likelihood of more price cuts & lower volumes" as the year continues.

Investor focus will now shift to Tesla's second-quarter earnings report later this month and a separate marketing event planned for August when the company intends to reveal its design for a dedicated robotaxi or "CyberCab."

— CNBC's Jordan Novet contributed to this report.