Tesla stocks rises on better-than-expected car deliveries

AUSTIN: Elon Musk’s electric vehicle manufacturer Tesla stocks surged in price following the release of its second-quarter production and delivery numbers that exceeded expectations set by analysts.

Tesla delivered 443,956 vehicles in the second quarter, slightly fewer than the previous year. However, this surpassed analysts’ expectations of about 439,000 vehicles, which is viewed positively given Tesla’s challenges in the automotive sector during the first half of 2024.

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Tesla stock rose by 10.2 per cent to close at $231.26 per share, its highest level since January of this year. The increase shows that investors have renewed confidence in Tesla’s future prospects.

Several analysts in the US suggest that these results indicate Tesla may have overcome recent challenges and could be on track for further improvements ahead.

Tesla’s production of 410,831 vehicles in the second quarter increased investor confidence in the company. Matching strong delivery numbers with efficient production signals the automotive company’s durability amid global supply chain disruptions and fluctuating electric vehicle demand.

In the second quarter, Tesla deployed a record-breaking 9.4 gigawatt hours of battery storage. This achievement shows Tesla’s commitment to advancing technology and sustainable energy solutions, enhancing its competitive position and supporting its long-term growth strategy.

Analysts have adjusted their price targets higher, indicating increased confidence in Tesla’s ability to handle challenges and take advantage of opportunities. The upcoming “robotaxi” event on August 8 is expected to generate even more expectations in the market for Musk’s company.

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Tesla’s recent performance contrasts with previous concerns about declining electric vehicle demand and competition from other automakers, mostly Chinese. The rise in Tesla’s stock price suggests investors are reassessing its leadership in electric vehicles and autonomous driving technologies.