The Tesla brand logo can be seen on May 28, 2026 at the car manufacturer’s facility in Parsdorf near Munich (Bavaria, Germany).
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Tesla reported auto deliveries and production levels for the second quarter that far exceeded Wall Street’s expectations, as Elon Musk’s automaker tries to bounce back from consecutive annual declines in auto sales.
Here are the key numbers:
- Total vehicle deliveries for Q2: 480,126
- Total car production for Q2: 451,758
Analysts had expected deliveries of about 406,600, according to StreetAccount. Tesla’s company-wide consensus published last week was 406,024 deliveries.
Shares of Musk’s EV maker fell nearly 7.49% on Thursday despite the strong report. The stock had its worst day in nearly a year, and has fallen in each of the past three quarterly earnings reports.
At the same time last year, Tesla reported about 384,000 deliveries, and in the first quarter of 2026, the number reached 358,023.
Thursday’s update showed a 25% year-over-year increase, and a 34% increase compared to the first quarter of Tesla’s deliveries.
Tesla doesn’t release exact delivery numbers by region or by model, but the company said its entry-level Model 3 sedan and popular Model Y SUVs accounted for 467,762, or 97% of its deliveries. The delivery is a very close approximation of the sales reported by Tesla but not precisely defined in its communications with shareholders.
Tesla is struggling to recover from consecutive annual declines in auto sales caused in part by a consumer backlash against Musk, the world’s richest man, and the loss of the US government’s tax credit. Musk’s provocative political rhetoric, endorsement of anti-immigrant activists in Europe, and his work with the Trump administration to cut federal workers have driven away potential EV buyers.
Meanwhile, Chinese automakers such as BYD, Nio and Xiaomi have come to market with a range of affordable, high-tech EVs, while Tesla has also faced increasing competition from South Korean automaker Hyundai Motor and European EV makers including Volkswagen.
To boost sales, Tesla began selling less expensive versions of its Model 3 and Model Y cars, and recently made its driver assistance systems, marketed under the name Full Self-Driving (Supervised), available in some European markets.
The biggest gain for the company this quarter is likely to be the increase in fuel prices due to the war in Iran. European car buyers bought more Teslas and other EVs in the first half of the year. However, oil prices are now back close to where they were trading before the war broke out in February, in response to a fragile deal between the US and Iran, and efforts by officials to bring the conflict to a permanent end.
In the US, car buyers have moved away from fully electric cars, and are embracing hybrid models, according to Dan Hearsch, managing director at AlixPartners.
“We have a big country, and people live far away compared to Europe where the charging infrastructure is better and people don’t have to drive so far,” said Hearsch.
In the second half of the year, inflation, Changes in trade policy, rising costs of chips and other components could cause major challenges for US automakers, he added.
Tesla stock chart.
Musk ordered Tesla to focus on ramping up production and sales of its electric semi trucks, and begin production of its self-driving Cybercab. The company is also looking to begin production of its Optimus humanoid robots.
In Tesla’s first-quarter investor update, the company said it is “developing” its vehicle portfolio, with an “emphasis on vehicles designed for a fully autonomous future” and expected “volume production of both the Cybercab and Tesla Semi this year.”
Tesla said in January that it will stop production of its flagship models S and X, and will use its factory lines in Fremont, California to build Optimus units.
In its Energy business, which installs solar photovoltaics and sells battery energy storage systems, Tesla said it used 13.5 GWh in the second half of 2026, compared to 9.6 Gwh last year. Analysts expect 13.3 GWh.
Musk’s SpaceXwhich owns xAI, bought $269 million worth of Tesla Megapacks in April, according to its IPO filing. SpaceX is using Megapacks to reduce xAI electricity costs in its power-hungry data centers in and around Memphis, Tennessee.
In the second quarter earnings report, Tesla did not disclose whether related party transactions contributed to the strong numbers. Last year, SpaceX spent $131 million on Tesla Cybertrucks. That dollar amount represents a majority of the 20,237 Cybertrucks Tesla has sold by 2025, according to Kelley Blue Book.
Tesla plans to report second-quarter financial results on Wednesday, July 22, after the market closes.
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