Global electric vehicle manufacturer Tesla announced on Tuesday (July 2nd) that its car deliveries in the second quarter decreased by 4.8% compared to the previous year. This marks the first time the company has seen consecutive quarterly declines in sales.
In early trading on Tuesday, the stock price of the electric car giant rose by over 7%. Prior to the delivery update, the company’s stock price had already dropped by 16% since the beginning of the year.
Data released on Tuesday revealed that Tesla delivered 443,956 vehicles globally in the second quarter, a 4.8% decline year-over-year, but better than analysts’ average expectations. A survey conducted by the London Stock Exchange Group (LSEG) of 12 analysts indicated that Wall Street, on average, expected Tesla to deliver 438,019 vehicles in the second quarter of this year. Tesla’s actual delivery numbers once again placed it ahead of major competitor BYD in quarterly sales of pure electric vehicles, with BYD delivering 426,039 electric vehicles in the second quarter.
Breaking down the specific models, Tesla delivered 422,405 Model 3 and Model Y vehicles in the second quarter, along with 21,551 units of other models including Model S sedans, Cybertruck, and Model X luxury SUVs.
Tesla’s growth is no longer as rapid as in recent years, as it faces weakened demand for cars and intensified competition from rivals, particularly in China where competition is fiercest. With competitors introducing lower-priced electric vehicle models, Tesla’s sales in China have experienced a decline. In June, Tesla’s sales in China dropped by 24% compared to the previous year.
In January of this year, Tesla had indicated that it expected a “significant” slowdown in delivery growth for the year and abandoned its goal of delivering 20 million vehicles annually by 2030 in its latest annual impact report released in May. This shift represents a significant change from its long-term annual growth goal of 50%.
During the April to June period, the company produced 410,831 vehicles, a 14% decrease compared to the same period last year. Tesla did not provide an explanation for the decline in sales and production, but may offer more details when it announces its second-quarter earnings on July 23rd.
As a barometer for the electric vehicle industry, Tesla’s second-quarter sales data is closely watched by analysts to gauge whether the company can bounce back from a weak performance in the first three months of the year. Tesla’s global delivery numbers in the first quarter saw a year-over-year decline for the first time since 2020, partly due to production halts.