Glen Smith, GDS Wealth Management CIO, notes that the market is expanding beyond the tech giants. He suggests balancing the cost of dollars in positions amid the current volatility, seeing opportunities in other sectors such as health care and finance.
Tesla reported strong second-quarter deliveries on Thursday, beating Wall Street expectations as a rebound in Europe helped fuel hopes that the electric car maker could return to annual growth.
The Austin, Texas-based company delivered 480,126 vehicles from April to June, a record for the second quarter, up nearly 25% from a year ago and exceeding analysts’ expectations of 402,776 vehicles, according to Visible Alpha data.
Tesla produced 451,758 vehicles in the quarter, which means deliveries exceeded production by about 28,000 vehicles as the company operated from inventory built at the beginning of the year.
SPACEX PROCEEDS TO LAUNCH HIGHLY EXPECTED IPO
Tesla electric cars fill a car lot in Smithtown, NY, July 5, 2023. (John Paraskevas/Newsday RM via Getty Images)
Strong results from Tesla’s core auto business provide a significant cushion as CEO Elon Musk focuses on expensive ambitions for autonomous driving and artificial intelligence, the main drivers of the company’s estimated $1.6 trillion valuation.
Shares of the Austin, Texas-based company fell more than 7% at the end of Thursday. Analysts and investors said optimism was bought at a price as the stock gained 12% earlier this week.
Tesla’s recovery in Europe was helped by rising fuel prices, government incentives for EVs, the rapid electrification of the company’s fleet and the easing of consumer backlash by CEO Elon Musk’s politics.
“I think the big growth in Europe is the main driver for Tesla at the moment. The US sales still seem to be low, although it is less than the wide reduction of the US EV, while China is seeing a little growth,” said Seth Goldstein, senior equity analyst at Morningstar.
Goldstein, who expected a third straight annual decline, said after the report, “I think it’s going to be very difficult to see a full-year decline at this point.”
TESLA IS RECALLING MORE THAN 218K FOR ITEMS ABOVE REVIEW PICTURE THAT POSSESSES AN EXHAUST HAZARD
A Tesla robot drives down the street near South Congress Avenue in Austin, Texas, on June 22, 2025. (Joel Angel Juarez/Reuters)
Tesla last year introduced stripped-down, low-cost versions of its Model 3 compact sedans and Model Y SUVs and introduced attractive incentives and financing options.
“Their prices and products help consumers overcome any issues they might have with Elon Musk personally,” said Sam Fiorani, vice president at research firm AutoForecast Solutions.
Demand in the US, Tesla’s biggest market, however, remains tight after the removal of EV tax credits late last year.
“We have high hopes for some growth this year,” Fiorani said.
Analysts said the elimination of new EV purchase incentives in the US last year continues to weigh on sales, while some aging model renewals have led to strong performance in the Chinese market.
“We believe that Tesla’s US sales are likely to decline by at least 10% in the quarter,” said Freedom Broker senior analyst Dmitriy Pozdnyakov.
MUSK SAYS TESLA, SPACEX TO BUILD ADVANCED CHIP MANUFACTURING FACILITY
Elon Musk attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center on June 16, 2023, in Paris, France. (Chesnot/Getty Images)
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| TSLA | Company TESLA INC. | 393.45 | -31.85 |
-7.49% |
The China-made company’s EV sales have increased this year, helped by renewed Model Y production, despite stiff competition from BYD and other domestic automakers.
The company said it will report quarterly results on July 22 after the market closes.
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Musk became the world’s first trillionaire last month after SpaceX began public trading on the Nasdaq at $150 a share, above its IPO price of $135.
Musk’s net worth stood at $982 billion as of Wednesday, according to the Bloomberg Billionaires Index.
Reuters contributed to this report.
