Glenn Smith, IT director at GDS Wealth Management, points out that the market is expanding beyond the tech giants. He suggests dollar cost averaging positions amid current volatility, seeing opportunities in other sectors such as health care and financials.
Tesla reported strong second-quarter shipments on Thursday that beat Wall Street expectations as a recovery in Europe helped fuel hopes that the electric car maker can return to annual growth.
Austin, Texas company delivered 480,126 vehicles from April to June, a record for the second quarter, up about 25% from a year earlier and well above the 402,776 that analysts were expecting, according to Visible Alpha.
Tesla is produced 451,758 vehicles during the quarter, meaning shipments outpaced production by about 28,000 vehicles as the company worked with inventories built up earlier in the year.
SPACEX MOVES TO LAUNCH LONG-ANTICIPATED IPO
Tesla electric cars fill a parking lot in Smithtown, New York on July 5, 2023. (John Paraskeva/Newsday RM via Getty Images)
Strong results from Tesla’s core car business provide an important cushion as CEO Elon Musk focuses on expensive ambitions in autonomous driving and artificial intelligencekey drivers of the company’s roughly $1.6 trillion valuation.
Shares of the Austin, Texas-based company fell more than 7% at Thursday’s close. Analysts and investors said the optimism was taken into account, as the stock jumped 12% earlier this week.
Tesla’s recovery in Europe this was helped by a jump in fuel prices, government incentives for electric vehicles, faster electrification of corporate fleets and an easing of negative consumer reaction to CEO Elon Musk’s policies.
“I think the huge growth in Europe right now is a key driver for Tesla. U.S. sales continue to decline, though less than the broader decline in U.S. electric vehicles, while China there’s been a little bit of growth,” said Seth Goldstein, a senior analyst at Morningstar.
Goldstein, who expected a third straight annual decline, said after the report: “I think at this point it would be very difficult to see a full-year decline.”
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A Tesla robot taxi drives down the street along South Congress Avenue in Austin, Texas on June 22, 2025. (Joel Angel Juarez/Reuters)
Last year, Tesla introduced slimmed-down, lower-cost versions of its Model 3 compact sedan and Model Y SUV, and rolled out attractive incentives and financing options.
“Their prices and their products help customers overcome any issues they may have with Elon Musk personally,” said Sam Fiorani, vice president of research firm AutoForecast Solutions.
However, demand in the US, Tesla’s biggest market, has remained tight since the end of tax breaks for electric cars late last year.
“We are cautiously optimistic about some growth this year,” Fiorani said.
Analysts said the elimination of incentives to buy new electric vehicles in the US last year continued to pressure sales, while some updates to an aging model line led to stronger performance in the Chinese market.
“We believe that Tesla’s US sales are likely to be down at least 10% in the quarter,” said Freedom Broker senior analyst Dmitriy Pazdnyakov.
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Elon Musk attends the Viva Technology innovation and startup conference at the Porte de Versailles Exhibition Center on June 16, 2023 in Paris, France. (Chesnot/Getty Images)
| Ticker | Security | The last one | A change | Change % |
|---|---|---|---|---|
| TSLA | Company TESLA INC. | 393.45 | -31.85 |
-7.49% |
Sales of the company’s Chinese electric vehicles have grown this year, thanks to production of the updated Model Y, despite strong competition from BYD and other domestic automakers.
The company said it will report quarterly results on July 22 after markets close.
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Musk briefly became the world’s first trillionaire last month after SpaceX went public on the Nasdaq at $150 a share, up from its IPO price of $135.
As of Wednesday, Musk’s net worth was $982 billion Bloomberg Billionaires Index.
Reuters contributed to this report.
