Tesla suddenly exploded.
Overnight on the US stock market, Tesla's stock price soared, with an increase of 10.19% as of the close, reaching $231.24. The total market value surged by $68.2 billion (approximately RMB 490 billion). On the news front, Tesla's latest delivery data shows that the company delivered a total of 444000 new vehicles in the second quarter, better than the market's expected 439300 vehicles, and the total production in the second quarter was about 411000 vehicles.
Wall Street analysts say that sales in China and the United States exceeded expectations, helping Tesla achieve strong results. Both domestic sales in the United States and sales in China have improved, and Chinese electric vehicle manufacturers have also performed well in the second quarter.
Despite Tesla's unexpected sales figures, there is still significant market divergence regarding Tesla's future growth prospects. Among them, Wells Fargo Bank believes that the decrease in demand and reduced returns from price cuts have led to a decrease in delivery growth, and recommends selling Tesla stocks; Garrett Nielsen, Vice President and Senior Equity Analyst at CFRA Research, said that the unexpected delivery volume greatly alleviated concerns about weak demand for electric vehicles.
An overnight surge of 490 billion yuan
Overnight on the US stock market, Tesla's stock price soared, expanding to 10.19% at $231.24 as of closing, with a total market value skyrocketing by $68.2 billion (approximately RMB 490 billion), marking Tesla's sixth consecutive trading day of gains.
On the news side, Tesla's delivery data released on July 2nd showed that the company delivered a total of 444000 new vehicles in the second quarter, better than the market's expected 439300 vehicles, and the total production in the second quarter was about 411000 vehicles. However, it should be pointed out that the delivery data in the second quarter decreased by 4.8% year-on-year, marking the second consecutive quarter of year-on-year decline.
Meanwhile, the unexpected delivery volume has also helped Tesla maintain its position as the top seller of electric vehicles worldwide.
The report shows that the delivery volume of Tesla Model 3 and Model Y for the quarter was 422405 vehicles, accounting for over 95% of the total delivery volume. The delivery volume of "other models" including Model X, Model S, and Cybertruck was 21551 vehicles.
Tesla did not provide detailed information on the sales of Cybertruck, as the previous two recall events indicated that Tesla had delivered over 11000 Cybertrucks to customers. At last month's annual shareholder meeting, Tesla CEO Elon Musk revealed that the production of this car "reached a record high of 1300 units in the past week.".
The report shows that Tesla produced 410831 cars in the second quarter, a 14% decrease from the same period last year. Tesla did not explain the reasons for the decline in sales and production, but is expected to provide a detailed explanation when announcing its second quarter results on July 23rd.
At the same time, Tesla stated that it deployed 9.4 GWh of energy storage products in the second quarter, setting a new record for single quarter deployment, higher than the 4053 megawatt hours in the first quarter. This means that the company almost reached the number of energy storage products deployed throughout last year in the first half of 2024. Analysis suggests that energy storage products have brought a glimmer of hope to Tesla in the face of declining car sales, but the challenge is to translate these growth into meaningful revenue.
Although Tesla did not provide a regional breakdown of sales, analysts said that sales in China and the United States exceeded expectations, helping Tesla achieve strong results.
Ken Mahoney, CEO of Mahoney Asset Management, said that seeing an improvement in both domestic sales in the United States and sales in China is very good compared to their struggling situation in the first quarter of this year.
Moreover, Chinese electric vehicle manufacturers performed quite well in the second quarter. BYD stated that its sales of electric vehicles jumped by 21% in the second quarter, reaching 426039 units. Meanwhile, NIO and Ideal Automobile released reports showing a year-on-year increase in vehicle delivery data in June.
Tesla's sales in China, including domestic sales and exports to Europe and other regions, decreased by 17% in the second quarter compared to the same period last year, but better than expected. Tesla did not provide its domestic sales segmentation data in China.
Tesla's sales in Europe were particularly weak, with a 36% decline in May, mainly due to reduced subsidies for electric vehicles and weak demand from fleet operators, who accounted for nearly half of the region's sales last year.
Huge differences
Despite Tesla's unexpected sales figures, there is still significant market divergence regarding Tesla's future growth prospects.
Among them, Colin Langen, an analyst at Wells Fargo, released a report stating that the company believes that "decreased demand and reduced returns from price cuts have led to a decrease in delivery growth.". He suggested selling Tesla stocks, expecting a decrease in Tesla's automotive gross profit margin due to the high likelihood of price cuts and reduced sales this year.
Analysis suggests that although Tesla still dominates in electric vehicle sales in the United States, its leading position is shrinking. According to Motor Intelligence, Tesla accounted for nearly half of electric vehicle sales in the United States in May, compared to approximately 60% in the same period last year. The US car sales in the first half of this year are expected to remain relatively stable compared to last year, as the industry continues to face high interest rates driving up monthly supply.
Garrett Nielsen, Vice President and Senior Equity Analyst at CFRA Research, stated that the unexpected delivery volume "greatly alleviated concerns about weak demand for electric vehicles. After shareholders re approved Musk's 2018 compensation plan at the mid June annual meeting, Tesla's stock price continued to ride a positive momentum."
Morgan Stanley analyst and long-term long head of Tesla, Adam Jonas, believes that as AI data centers are being built across the United States, the US power grid will bear a huge load, and Tesla's energy business is expected to take on demand and become a key player in the market. The bank has given Tesla an overweight rating and raised its target price to $310.
In April of this year, Musk announced in a company email that in order to further improve efficiency and reduce costs, the company needs to cut more than 10% of its employees. This is Tesla's fifth large-scale layoff since 2017, with reports adding that the actual target for this layoff may reach 20%.