U.S. stocks surged over 7% in pre-market trading, with Tesla delivering 384,000 vehicles in the second quarter, exceeding the market's pessimistic expectation of 350,000 vehicles

Tesla's global delivery volume in the second quarter reached 384,122 vehicles, slightly lower than the average analyst forecast of 389,407 vehicles, but better than the pessimistic predictions circulating in the market over the past week of 350,000 to 360,000 vehicles, driving Tesla's U.S. stock up nearly 7% in pre-market trading.

In the face of ongoing challenges with declining sales, Musk has personally taken over the company's sales operations in the United States and Europe to address the increasingly fierce market competition.

On July 2, Tesla announced its production and sales data for the second quarter.

• Second-quarter vehicle production was 410,244 units, estimated at 400,083 units.
• Deliveries were 384,122 units, down 13% year-on-year, estimated at 389,407 units.
• Model 3/Y production was 396,835 units, estimated at 383,567 units.
• Model 3/Y deliveries were 373,728 units, down 12% year-on-year, estimated at 377,295 units.

Deliveries of models such as Model S, Model X, and Cybertruck totaled 10,394 units, below the expected 14,644 units. The production of these models was also slightly below expectations at 13,409 units, while the forecast was 13,616 units.

Second-quarter sales down 13% year-on-year, annual growth target under pressure

Tesla's latest data shows that in the three months ending June 30, the company delivered 384,122 vehicles, a 13% decrease compared to the same period last year. This means Tesla needs to deliver nearly 110,000 additional vehicles in the second half of this year to achieve positive annual sales growth.

This figure is in stark contrast to Musk's statement in mid-May when he claimed that Tesla's automotive business had recovered from a sluggish start to the year, partly due to his commitment to focus entirely on Tesla's business after stepping back from DOGE work. If the U.S. Congress passes Trump's multi-trillion-dollar spending bill and eliminates the electric vehicle purchase tax credit, Tesla's sales at the end of this year may face further challenges.

Aging models, intensified competition, poor performance in the Chinese market

Although Tesla had hoped that the revamped Model Y SUV would boost sales this quarter, the performance of this key product did not meet expectations. Currently, Tesla's relatively outdated product line is gradually losing competitiveness in the global market. Meanwhile, General Motors is continuously expanding its share in the U.S. electric vehicle market.

Tesla had informed investors in April that new vehicle plans, including more affordable models, were still expected to go into production in the first half of this year. However, these cheaper new vehicles have not materialized as expected, leading several analysts to speculate that they may have been delayed

Analysts Lower Full-Year Expectations, Musk Personally Takes Over North American and European Sales

Currently, most analysts expect Tesla to experience a decline in annual sales for the second consecutive year.

According to the average forecast of analysts surveyed by the media, Tesla's total deliveries for 2025 are expected to be around 1.65 million units, a decrease of about 8% from last year's 1.79 million units. Tesla's management abandoned its forecast for a recovery in automotive business growth this year back in January, and executives warned in April that they would reassess their outlook when announcing financial results this month.

Although Musk insisted during a media interview on May 20 that Tesla's delivery volume has recovered and the company does not expect any major shortages in the future, he also shifted investors' attention from vehicle sales to the highly anticipated autonomous taxi service at the end of the quarter. Despite the service currently being offered only in a limited area of Austin to a few fans, and some driving videos prompting scrutiny from federal safety regulators, Tesla's stock price still rose 23% this quarter.

Additionally, following the departure of his confidant Omead Afshar (who was responsible for Tesla's sales and manufacturing operations in North America and Europe), Musk is currently taking on more oversight responsibilities for the company's automotive business. According to media reports citing informed sources on Tuesday, Tesla's sales operations in the U.S. and Europe will now report directly to Musk, while Senior Vice President Tom Zhu will continue to oversee sales in Asia and have overall responsibility for global manufacturing operations.

After the data was released, Tesla's U.S. stock surged over 7% in pre-market trading.

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