Tesla Inc. is set to announce its delivery figures, which serve as a proxy for sales, later this week. Wall Street anticipates that the electric vehicle (EV) manufacturer will report fewer car deliveries than last year.
Timing of Tesla’s Reports
Tesla typically releases its production and delivery report a few days after the end of the quarter, although it does not adhere to a strict schedule. Concurrently, Tesla will likely announce the date for its quarterly earnings report, which is expected to follow approximately two weeks later.
Reporting Practices
Unlike several other U.S. automakers, Tesla reports quarterly rather than monthly figures and does not provide a breakdown by country or region. This approach differs significantly from other industry practices.
Delivery Projections
Analysts surveyed by FactSet predict that Tesla will report the delivery of 436,000 vehicles for the second quarter, primarily consisting of the more affordable Model 3 sedans and Model Y compact SUVs. In comparison, Tesla delivered 466,000 vehicles in the second quarter of 2023.
Analysts’ Insights
Last week, RBC analysts analyzed app downloads and registration data from the U.S., China, and Europe. Their findings suggest that Tesla’s sales might need to meet the consensus estimate.
Market Reactions and Predictions
Wedbush Securities analyst Dan Ives noted in a Monday report that he expects the delivery figures to be announced early Tuesday. He described the first half of the year as “very bumpy” for Tesla due to weaker demand for EVs overall.
Positive Signs from China
Ives also mentioned a slight improvement in Tesla’s performance in China, describing it as a “mini rebound” that could help Tesla meet the consensus estimate. However, he cautioned that “whisper numbers” are lower, ranging from 415,000 to 420,000 units. He emphasized that the market’s focus is shifting towards a potential recovery in the year’s second half, price stabilization, growth in China, and the anticipated Robotaxi Day on August 8.
Tesla’s Stock Performance
Tesla’s shares have fallen by 15% this year, contrasting the approximately 15% gain in the S&P 500 index (SPX).
Broader Automotive Market
Despite high interest rates and prices, new car sales are expected to increase slightly in June. This trend highlights ongoing challenges and resilience in the broader automotive market.
