- Tesla's sales fell about 5% in the second quarter.
- The results weren't as bad as analysts expected.
- Tesla shares rose more than 8% on the news.
Tesla's sales fell for the second consecutive quarter, dropping about 5% from the same period a year ago.
The drop in deliveries is the latest sign that an industry-wide slowdown is finally starting to affect Elon Musk's Tesla, but Tuesday's numbers weren't as bad as some analysts had expected, sending the company's shares up more than 8%.
Wedbush's Dan Ives, a longtime Tesla bull, called Tesla's second-quarter sales results a “huge comeback” for Musk's electric vehicle company.
“In short, we believe the worst is over for Tesla and EV demand is beginning to recover,” Ives wrote in a note to clients.
Tesla reported second-quarter sales of 443,956 vehicles on Tuesday morning, down about 4.7% from the same period a year ago but beating Wall Street expectations.
Analysts surveyed by Bloomberg had expected Tesla to deliver 439,302 vehicles in the third quarter, down about 6% from the same period last year.
Tesla is valued on a curve
When assessing Tesla's performance, it's important not to get too caught up in the hard numbers — at least, that's what the company's most ardent supporters say.
Tesla reported its worst first-quarter deliveries in years and profits that fell far short of expectations, but its shares reversed weeks of steep declines in the days following the earnings report.
Despite a long list of broken promises, Musk has maintained investor confidence by consistently disappointing expectations when times get tough — see the once-failed Model 3, for example.
Since first feeling the blow of the EV market slowdown earlier this year, Tesla's metrics of success on Wall Street no longer seem to be tied to the company's growth.
On the contrary, as long as the company's performance isn't as bad as we all expect and Musk gives Wall Street a plan for more growth in the future, Musk and his EV company stand to get handsomely rewarded.
More recently, the plans hinge on an AI-powered robotaxi fleet, with Musk set to unveil details in August.
Tesla is also scheduled to report second-quarter results after the market closes on July 23.
