Analysts Eye Tesla’s Anticipated Q2 Success

Electric vehicle (EV) industry pioneer, Tesla Inc., is due to release its second-quarter sales and production figures in the next few days. This anticipation comes as the company’s stock battles to sustain its momentum after an exceptional surge earlier this month.

Unlike most U.S. automakers, Tesla broke away from the practice of monthly sales updates and chose to release quarterly data on its deliveries and production, closely after each quarter’s end. This trend was later adopted by General Motors Co.

Analysts predict that Tesla’s second-quarter report will show the sale of about 445,000 EVs. The lion’s share of these, approximately 434,000, are expected to be sales of the popular Model 3 sedans and Model Y compact SUVs.

RBC Capital Markets analyst, Tom Narayan, reportedly foresees Tesla reporting sales of 438,000 vehicles, a figure he derived from various data sources.

“Total global app downloads … continue to trend higher and are a good indicator for increasing sales,” Narayan said. He also highlighted that sales in Europe are following usual quarterly delivery trends. He noted that demand “is responding favorably to price cuts earlier this year and [Tesla] is on track to achieve their [1.8 million] vehicle sales target for the year.”

Deutsche Bank analyst Emmanuel Rosner also shared his optimism about Tesla’s sales momentum, especially in China, raising his second-quarter delivery expectations to 448,000 from an earlier estimate of 438,000.

Tesla’s first-quarter deliveries were a bit lower than expected, sparking concerns among some analysts about potential price cuts ahead. The EV manufacturer has already adjusted EV prices a few times this year, mostly downward, amidst growing competition in the EV market.

Despite these challenges, Tesla’s stock made a record-breaking 13-day winning streak earlier this month, surpassing a previous record of 11 consecutive gains set in January 2021. This year, the stock has seen an impressive 108% increase, compared to the S&P 500 index’s 14% rise.