- Tesla’s global Q2 deliveries are down 4.8% year-over-year, but remain 14% higher than Q1.
- Sales in China, a key market, saw a steeper decline of 24.2% in June compared to last year.
- Analysts are split on Tesla’s outlook, with some positive and others worried about softening demand.
Tesla’s global second-quarter sales are down, marking the second consecutive quarter that the American EV maker has reported a decline in deliveries. With 443,956 EVs delivered, sales dropped by 4.8 percent compared to last year but are 14 percent more compared to the first quarter.
Meanwhile, data from the China Passenger Car Association (CPCA) showed that June’s sales of Chinese-made Teslas fell by 24.2 percent from a year earlier, with the China-made Model 3 and Model Y down 2.2 percent from May.
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While Tesla doesn’t break out sales separately for the US, Cox Automotive estimates that American Q2 sales fell 15 percent. At the same time, registration data shows that new Tesla numbers dipped by 11 percent between January and April.
The outlook on Tesla’s sales performance is somewhat mixed, with some calling the Q2 results a win for the company. In contrast, others fear the automaker’s aging model range and sizeable incentives push just isn’t enough in a time of softening EV demand.
On the one hand, the drop in sales is smaller than what was expected, with Reuters reporting that the softened blow led to share prices increasing by 10 percent — the highest they’ve been in the last six months. “The stock continues to ride a wave of positive momentum following its annual meeting in mid-June in which shareholders re-approved Musk’s 2018 compensation plan,” said CFRA Research analyst Garrett Nelson.
Meanwhile, speaking to Auto News, Jessica Cadwell, head of insights at Edmunds, worries that Tesla has exhausted its options to drive growth in the US. “Times are tough for Tesla: EV sales have slowed, many EV competitors have also been generous with incentives, and the company’s haphazard price cuts and incentives have become less effective in capturing the attention of shoppers the more frequently they’re leveraged.”