Tesla stock rises again after better-than-expected deliveries report

Tesla shares rallied for a third straight day on Wednesday, bringing their gains for the week to 23% and almost wiping out their 2024 loss. The run follows Tesla's second-quarter vehicle production and deliveries numbers that beat analyst expectations on Tuesday.

The stock has rallied more than 70% from its 2024 lows in April and is close to wiping out losses for the year. Tesla shares closed 2023 at $248.48 and, on Wednesday, closed 6.5% higher at $246.39.

Tesla's total deliveries hit 443,956 vehicles in the second quarter, with total production at 410,831 vehicles over the period. Analysts had expected that Tesla deliveries — the closest approximation of sales disclosed by the automaker — to reach 439,000 in the three-month stretch ended on June 30, according to a consensus of estimates compiled by FactSet StreetAccount.

Tesla does not break down numbers for individual car models or specific regions.

In a Tuesday note, Citi analysts said they anticipate a "favorable share price reaction" following the release.

"From here, the focus will turn to Tesla's Q2 auto gross margins to gauge the price vs. cost equation," they added, also flagging the importance of any further company updates on future product launches.

The Tuesday delivery report comes after the company in April posted a decline of 8.5% in first-quarter deliveries to 386,810 — the first annual drop since 2020.

Some of Tesla's Chinese rivals, Geely owned Zeekr and Nio, reported record deliveries in June. The growth prospects of the electric vehicle sector in the world's second-largest economy came into focus last month, when the European Union announced higher tariffs of up to 38% on Chinese EVs which it found gain "heavily from unfair subsidies." Tesla, which has a