Tesla stock price surges after better news on deliveries
Tesla has become the latest of the Magnificent 7 to undergo a remarkable recovery, surging over 7% in early trading on Tuesday.
Decline in deliveries not as bad as feared
Tesla reported a 5% decrease in second-quarter ( Q2) vehicle deliveries, beating analyst expectations. The company's price cuts and incentives helped mitigate the decline.
The electric vehicle maker delivered 443,956 vehicles from April to June, down 4.8% year-over-year (YoY) but up 14.8% from the previous quarter. This exceeded the average Wall Street forecast of 438,019 deliveries, according to 12 analysts polled by LSEG.
Deliveries included 422,405 Model 3 and Model Y vehicles, with 21,551 units of other models such as the Model S, Cybertruck, and Model X. Tesla produced 410,831 vehicles during this period.
Sales still declined for a second quarter
This marks Tesla's second consecutive quarter of YoY sales decline. The company has employed various strategies to stimulate demand, including price cuts, discounts, and attractive financing options in key markets like the U.S., China, and Europe.
While Tesla’s chief executive officer (CEO) Elon Musk anticipates increased deliveries in 2024, analysts generally expect a decline due to waning electric vehicle sentiment and high interest rates. Tesla has also tempered its growth expectations, dropping its 2030 goal of 20 million annual vehicle deliveries and acknowledging "notably lower" growth for the current year.
Tesla stock price – technical analysis
For those brave or foolish enough to buy the low of late April, the price has now risen 62%. The gains have come in two waves – an initial surge into the end of April, followed up by consolidation, and then the latest huge rally from mid-June.
The latest surge has taken the price through the 200-day simple moving average (SMA) (currently $205.53) for the first time since 11 January, and the price now sits at its highest level since mid-January.
The next challenge is trendline resistance from the July 2023 high, which comes into play around $230.00. Beyond this lies trendline resistance from the 2021 record high.
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