Monday, August 4, 2025

Tesla Surprises with Stronger-than-Expected Q2 Deliveries, Stocks Soar 10%

Yonhap News

Tesla’s shares soared nearly 10% on Tuesday after the company reported better-than-expected second-quarter vehicle production and delivery numbers. Contrary to market expectations of around 420,000 units, the company announced that it shipped 443,956 units in the second quarter.

The figure marked a 4.8% decrease compared to last year’s period, but it was not as bad as the market had feared.

In the announcement, Tesla disclosed that it had produced 418,310 units and shipped 443,956 units over the three months in the second quarter. 

Tesla explained that the large helped the scale of shipments to exceed production significantly. 

The shipment number of 443,956 units is a 4.8% decrease compared to 466,140 units in the second quarter of last year. However, it was much better than market expectations. 

According to the Wall Street Journal and CNBC, 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.

Troy Teslike, an independent researcher widely followed by Tesla fans, was more pessimistic in the forecast, expecting 423,000 units. 

The decline rate of Tesla’s second-quarter delivery improved significantly compared to the first quarter. 

In April, Tesla reported a year-on-year drop of 8.5% in first-quarter deliveries to 386,810, the first annual decline since 2020.

Earnings Announcement·Robotaxi Day

Whether Tesla can solidify its upward momentum, leveraging its recent surge, depends on the success of its 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.”

Although deliveries have decreased, the decrease rate has significantly slowed compared to the first quarter. A result that beats market expectations can lead to the judgment that sales may be better than expected. 

However, the problem is the selling price. 

Tesla explained that the first quarter deliveries decreased by 8.5% compared to a year ago, but sales plummeted by 13% over the same period, significantly exceeding the decrease in deliveries. 

The main reason was a drop in the average selling price (ASP). 

Since Tesla did not implement many additional price cuts in the second quarter, sales likely exceeded expectations.

There are also high expectations for the Robotaxi Day event scheduled for the 8th of next month.

With ongoing road tests of Tesla’s fully autonomous driving (FSD) technology in Shanghai, China, optimists believe Tesla is poised to advance with FSD significantly.

Dan Ives, an analyst at Wedbush Securities, is optimistic about Tesla’s potential. Spurred by Robotaxi Day, he predicts that the company will reach a market capitalization of $1 trillion and has set a target price of $275.

Chased by BYD

Tesla remains the world’s leading electric vehicle manufacturer but faces fierce competition from its Chinese rivals.

BYD announced that it delivered 426,039 electric vehicles in the first quarter. 

However, while Tesla’s delivery numbers continue to decline, the Chinese opponent is on the rise. Therefore, the rankings could be reversed at any time. While Tesla’s second-quarter deliveries decreased by 4.8% over a year, BYD surged by 21%. 

However, some suggest that BYD’s growth momentum will also face setbacks. Recently, Europe has raised the import tariff rate on Chinese electric vehicles, including those by BYD, to nearly 40%, and the United States has doubled it.

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