Tesla, the electric vehicle and clean energy company founded by Elon Musk, saw a significant rise in its stock price as it announced that its second quarter deliveries had surpassed expectations. The stock jumped by 10% following the news, indicating strong investor confidence in the company's ability to meet demand and continue its growth trajectory.
The increase in Tesla's stock price can be attributed to the fact that the company delivered more vehicles than anticipated during the second quarter, despite facing challenges such as supply chain disruptions and global chip shortages. This demonstrates Tesla's resilience and adaptability in navigating difficult market conditions, while still achieving impressive results.
The electric vehicle giant said it delivered 443,956 vehicles in the second quarter and produced 410,831 vehicles. While the deliveries figure was down 5% compared with the second quarter of 2023, it came in ahead of analysts' consensus of about 439,000.12
Telsa was the biggest gainer on the S&P 500 for the second consecutive day Tuesday, with shares rising 10.2% to close at $231.26. The stock has gained 17% over the past two sessions, but is still down about 7% since the start of the year.
Tesla has faced stiff competition abroad from its Chinese counterparts amid a waning market for EVs. In an effort to reduce costs, Tesla embarked on a plan to cut more than 10% of its global staff earlier this year in what some analysts saw as a signal of tough times ahead.
Elon Musk confirmed that near-term demand and sales will still struggle somewhat as the industry goes through a transitionary period.
Tesla shareholders recently voted in favor of giving Musk his 2018 $56 billion pay package and reincorporating the EV giant in Texas, moving it from Delaware.
With the company's annual meeting in the rearview mirror, analysts are looking to Tesla's second-quarter earnings in mid-July. The company will also unveil its robotaxi on Aug. 8.
Tesla stock ranks sixth in the 35-member IBD Auto Manufacturers industry group. The stock has a 59 Composite Rating out of a best-possible 99. Shares have a 32 Relative Strength Rating and a 62 EPS Rating.
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