“Our teams have done an outstanding job navigating through global supply chain and logistics challenges,” said Tesla’s statement about second-quarter sales.
Friday’s sales report did not break down Tesla sales by market, but the headline number should quiet some of the concerns about China, said Dan Ives a tech analyst with Wedbush Securities who has a buy recommendation on Tesla shares.
“Overall, this quarter was an impressive performance from Musk & Co. and now with a strong second half performance should be able to hit about 900,000 vehicles for the year, which was a major stretch goal to kick off this year,” said Ives in a note to clients. “China and Europe had strong months of May/June we believe, which were key this quarter.”
Tesla is also facing growing competition from electric vehicles from established automakers such as Volkswagen, General Motors and Ford.
But those EV sales by established automakers, coupled with the continued rise in Tesla sales, also demonstrates the growing appetite for electric vehicles by car buyers.
“Tesla’s second-quarter sales illustrate how effectively the automaker is riding the global EV wave,” said Karl Brauer, executive analyst at iseecars.com. “But increased competition from more established automakers is inevitable and could impact Tesla’s growth curve.”
The company restarted production of its more expensive Model S and Model X in the quarter, and delivered just less than 2,000 of those vehicles, which Ives said was less than forecasts of sales of more than 5,000. But the Model 3 and Model Y, which account for more than 90% of sales, topped sales forecasts