9:22 am, July 4, 2023
Tesla delivered a record number of cars during the second quarter of this year – defying market expectations to send its share price soaring.
Elon Musk’s company says it shifted 466,140 of its EVs – mainly Model 3, pictured, and Model Y, which are its cheaper cars – in the three months to the end of June.
That figure was much higher than the 447,000 predicted and the news led to Tesla’s Nasdaq share price rocketing by 6.9 per cent yesterday to close on $279.82 (circa £220.31).
Tesla took the axe to the prices of its Model 3 and Y cars in March and January, with the manufacturer saying it wanted to make them ‘even more accessible’, but it was seen as an attempt to offload stock that was taking its time to shift.
There had been speculation that consumer interest was cooling, while Musk’s well-publicised multi-billion-pound battle to take over Twitter was also seen to be damaging.
However, all that doubt and uncertainty seems to have stabilised and reversed.
The total number of cars delivered was also 10.4 per cent more than during the first three months of 2023 and a whopping 83.5 per cent more versus the same period last year, according to The Times.
Tesla’s share price is now more than twice what it was at the beginning of the year.
Tesla’s positive news was echoed by its start-up rival Rivian Automotive, which also beat analysts’ estimates for the three months to the end of June, delivering a total of 13,992 cars and vans when Wall Street had only expected it to shift 11,000, according to the Financial Times.
The FT quoted broker Wedbush analyst Dan Ives as saying: ‘Tesla and Rivian was major good news for the EV sector, as production and demand are humming despite many sceptics on the Street.
‘This was a trophy-case quarter for Tesla, and Rivian added to the fireworks with very impressive results for the June quarter.’
Rivian’s shares leapt by 17.4 per cent yesterday to close the day on $19.56 (£15.41).
