Tesla Stock Climbs On Higher-than-expected Q2 Deliveries

(RTTNews) - Shares of Tesla Inc. gained more than 10 percent on Tuesday's regular trading after the luxury electric vehicle giant reported its second-quarter vehicle deliveries, which were said to be above market estimates. The deliveries increased sequentially, but was lower than the prior year, despite efforts to boost demand. Meanwhile, quarterly production of vehicles was lower year-over-year and sequentially.

In the second quarter, the company produced around 410,831 vehicles and delivered 443,956 vehicles. As per Bloomberg data, analyst consensus estimate for deliveries was 439,302 vehicles.

In the preceding first quarter, Tesla's production was around 433,371 vehicles and deliveries were around 386,810 vehicles.

In the prior year, Tesla produced 479,700 vehicles in the second quarter and delivered over 466,000 vehicles.

In the latest second quarter, the company produced 386,576 models 3/Y and 24,255 other models, and it delivered 422,405 models 3/Y and 21,551 other models.

The company also said it deployed 9.4 GWh of energy storage products in the quarter, the highest quarterly deployment yet.

Tesla is scheduled to release its second-quarter results after market close on July 23.

The latest report comes as the car maker is struggling with weak demand and tough competition in the U.S. and Europe, as well as in its major market of China.

Amid the struggles, a June notice displayed on its website for some of the European Union block countries, including Germany, France, Ireland, Belgium and Hungary, showed that Tesla was getting ready to increase the price of its Model 3 electric vehicle that are made in China and exported to the EU from July onwards.

The notice urged prospective buyers of Model 3 in the EU to place their orders before the end of June, before the expected import duties to be imposed on EVs by the EU on such vehicles manufactured in China.

In May, the Biden administration had announced tariff on Chinese EVs as well as EV batteries and other parts in an effort to stop the flooding of cheap Chinese EVs to the domestic market.

Earlier this year, Tesla founder and CEO Elon Musk had remarked that in the absence of trade restrictions, Chinese EV companies will crush competitors elsewhere.

On the Nasdaq, Tesla shares closed Tuesday's regular trading at $231.26, up 10.20 percent. In the extended trading, the shares lost 0.06 percent to trade at $231.11.