Tesla’s second-quarter sales were down by nearly 5% compared to the same period last year, despite the company’s efforts to increase sales through financing deals and lowering prices. However, analysts had predicted a worse decline, causing Tesla’s stock to rise over 8%. This marks the second consecutive quarter that Tesla has seen a decrease in deliveries, indicating that the overall slowdown in the electric vehicle industry is affecting Elon Musk’s company.
Despite the sales drop, some analysts like Dan Ives of Wedbush see this quarter’s results as a positive comeback performance for Tesla. He believes that the worst is behind them and that demand for electric vehicles is starting to rise again. Tesla reported delivering 443,956 units in the second quarter, slightly above Wall Street expectations. Investors tend to trust Musk due to his ability to defy expectations when faced with challenges. For example, the Model 3, which faced doubts initially, has become a success for the company.
Looking towards the future, Musk has teased plans for an AI-driven robotaxi fleet, which will be further detailed in August. Despite their sales decline and concerns about slow growth in the electric vehicle industry, Tesla remains rewarded on Wall Street not for their growth but for simply not doing as poorly as anticipated. Tesla’s second-quarter financial results will be released on July 23 after the market closes.
