Tesla’s overall second-quarter deliveries were plagued by the COVID-19 lockdowns, which caused a 22-day production hiatus at the Shanghai Gigafactory. Despite this fact, Tesla’s creation of new Gigafactories in Berlin and Texas are showing all their positives, starting with impressive production in the last month of the quarter.
Although Tesla delivered only 254,695 vehicles in the second quarter, a marked decrease from deliveries in the first quarter, the automaker had the best production month so far in June. While some investor forecasts say between 340,000 and 350,000 units would be delivered in April, according to a Tesla report Barron’sthe slump can be largely attributed to the cessation of production in Shanghai – and may just be a bump in the road.
Tesla delivered a total of 310,048 vehicles in the first quarter, and the Q2 drop breaks a string of eight consecutive quarters of record-breaking deliveries. Still, some investors view Tesla’s deliveries as the best of a bad situation, despite an 18 percent drop from the previous quarter.
In one report, Wedbush analyst Daniel Ives called 250,000 a “line in the sand” for investors, saying anything below this number would be viewed as a disappointment by shareholders. Ives also added that the upward arc of the second half of the quarter will be what many investors are targeting, with June manufacturing numbers providing an encouraging sign.
“In a nutshell, while [Q2] delivery numbers were ugly and nothing to write home about, the street will be focused on the trajectory for [the second half]Ives wrote in a note.
Tesla production surges in June as EV makers battle chip shortages / YouTube
In the past, strong deliveries have been an early indicator of positive things for Tesla’s stock. After 7 of the last 10 quarters in which Tesla has delivered more than analysts’ expectations, the automaker’s stock has outperformed the market over the period, barring delivery reporting and quarterly results. Tesla’s deliveries met expectations in the first quarter, but the company’s stock was still down 10 percent from the time Tesla reported its revenues and deliveries.
Wall Street currently estimates that Tesla will have earned about $1.85 per share, down from the $3.22 earned for each share in the first quarter. The auto industry has also been hit harder than the overall market, with: Tesla’s Shares down about 35 percent so far this year (38 percent in the second quarter alone), while the S&P 500 and the Dow Jones Industrial Average are down 20 and 14 percent, respectively.
Tesla’s Q2 earnings report is scheduled for July 20 and will also play a major role in investor prospects from Q3 onwards.
Originally posted on EVANEX.
Through Zachary Viscontic
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