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Tesla auto deliveries beat expectations in Q2

By AFP - Jul 03,2024 - Last updated at Jul 03,2024

A Tesla charger frames the site of the Tonopah Historic Mining Park, in the mining town of Tonopah, Nevada on May 8, 2024 (AFP photo)

NEW YORK — Electric carmaker Tesla saw its shares surge on Tuesday after reporting auto deliveries that fell but topped analyst estimates, while General Motors logged modestly higher second-quarter US sales.

Tesla said it delivered around 444,000 vehicles worldwide in the April-June period, exceeding consensus estimates compiled by FactSet and sending its share price up around 9 per cent.

But deliveries were still 4.7 per cent down from a year ago.

Of the total figure, 422,405 involved Model 3 and Model Y vehicles. Tesla gave no detailed breakdown of the other autos delivered.

During the same period it produced 410,831 vehicles, including 386,576 Model 3 and Model Y autos.

"This was a huge comeback performance from Tesla and [Elon] Musk with the Street expecting a clear miss this quarter with EV demand still choppy globally," said Wedbush analysts in a note.

They expect "the worst is in the rear-view mirror for Tesla", helped by a "mini rebound" in China along with price stabilisation.

Tesla's robotaxi, to be unveiled on August 8, should also launch a new chapter for the automaker, the analysts noted.

Jessica Caldwell, head of insights at Edmunds, offered a more muted outlook on Musk's company.

"We've seen the automaker exhaust its bag of tricks by lowering prices and increasing incentives to spur demand without much success in the US market," she said.

She added that "times are tough for Tesla", noting that its sales techniques could have "long-term negative consequences".

 

Volatility 

 

Cox Automotive warned that volatility is expected in the second half of the year for the industry.

But vehicle supply is set to favor consumers, exerting "downward pressure on prices".

Charlie Chesbrough, senior economist at Cox Automotive, expects slower growth in the second half of 2024.

"Adding to the uncertainty in the market, many consumers likely believe things will be better, or at least more certain, after the November election, which adds to the hesitancy in buying," Chesbrough said.

GM said on Tuesday that it delivered 696,086 units in the United States, up 0.6 per cent on-year.

This was a markedly slower pace than last year's 19 per cent jump in the second quarter. However, GM said total sales were the best since the fourth quarter of 2020.

GM reported a 17 per cent rise in retail EV registrations, above the industry's 10 per cent gain.

Meanwhile, Toyota reported second quarter US sales of 621,549 vehicles, up 9.2 per cent. This includes 247,347 units of electrified vehicle sales.

Among start-ups, Rivian said on Tuesday it produced 9,612 vehicles and delivered 13,790 in the second quarter — levels in line with its forecasts.

The company saw a stock market boom after German automaker Volkswagen said in June that it was investing $5 billion — including $1 billion directly in Rivian this year and to create a joint venture producing technology used by both automakers.

Nikola, a start-up manufacturer of electric trucks, said it sold 72 hydrogen fuel cell trucks in the quarter, exceeding its guidance of 60.

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