Tesla shares witnessed renewed selling pressure on Thursday, 2 July, falling 8.3% to an intraday low of $390 apiece, even after the Elon Musk-led company reported strong vehicle deliveries and production for the second quarter. The upbeat numbers came after months of slowing car sales and pressure on the company’s brand.
The company on Thursday reported deliveries of 480,126 vehicles to customers, marking its highest-ever April–June quarter deliveries and representing an increase of about 25% compared with the same period last year.
In the corresponding quarter last year, Tesla reported around 384,000 deliveries, while in the first quarter of 2026, deliveries stood at 358,023.
Sales were supported by government incentives to boost EV adoption in Europe, along with increasing momentum in corporate fleet electrification. The recent spike in energy prices is also believed to have boosted demand for electric vehicles.
The performance marks a sharp turnaround from just a few months ago, when Tesla reported that annual vehicle sales had declined in 2025 for the second consecutive year, forcing it to surrender its position as the world’s largest EV maker to China’s BYD.
The Austin, Texas-based company is attempting to recover from consecutive annual declines in vehicle sales, which were partly driven by a consumer backlash against CEO Elon Musk and the removal of a U.S. federal tax credit for electric vehicles.
Tesla does not disclose delivery numbers by region or individual model. However, the company said its entry-level Model 3 sedan and best-selling Model Y SUV accounted for 467,762 vehicles, or about 97% of total deliveries.
The company introduced lower-priced versions of the Model Y and Model 3 last year in an effort to revive demand. In Europe, it also reduced leasing and financing costs.
Sales were further supported by a broader increase in EV adoption across the continent as gasoline and diesel prices climbed following the Iran conflict, according to the Associated Press.
Deliveries beat production
In terms of production, Tesla manufactured 451,758 vehicles during the quarter. Deliveries exceeded production by more than 28,000 units, enabling the company to reduce inventory that had built up during the first quarter.
This was the first delivery report since Tesla discontinued production of its luxury Model S and Model X vehicles in May. The company continued selling the remaining inventory of those models during the second quarter.
Earlier this year, Tesla announced in January that it would halt production of the flagship Model S and Model X and repurpose their production lines at its Fremont, California, factory to manufacture Optimus humanoid robots.
In a brief update to investors, Tesla also reported 13.5 GWh of energy storage deployments during the quarter, up 40.6% year-on-year and ahead of analysts’ expectations of 13.3 GWh. The company is scheduled to report its full second-quarter earnings on July 22.
Looking ahead, the EV maker’s lineup of newly produced passenger vehicles will consist of just three models—the Model 3, Model Y, and the low-volume Cybertruck pickup.
Tesla shares remain 32% below recent peak
After suffering sustained losses earlier this year, Tesla shares staged a strong comeback in May, rising 15%. However, the recovery proved short-lived as the stock resumed its downward trend. Despite the recent weakness, the stock is down 13% so far in 2026.
The company’s shares, one of the ‘Magnificent Seven’ stocks, have struggled to regain momentum since hitting a record high of $498.83 and are currently trading about 27% below that peak.
After ending the first quarter with a 17.34% loss, the stock recovered much of those losses in the second quarter, rising 13%.
(With inputs from agencies)
