Tesla stares down a second year of dwindling sales
The carmaker now needs to deliver more than one million vehicles in the typically strong second half to avoid another annual sales decline — a task that some analysts say could prove difficult due to tariff-driven economic uncertainty and threats to phase out key EV incentives under the Trump administration's sweeping tax bill, including the $7,500 (R131,620) credit on new sales and leases.
It reported on Wednesday that deliveries fell 13.5% in the second quarter, missing analysts' expectations, despite Musk saying in April that sales had turned a corner.
Shares, down about a quarter this year, rose 4.5% as the drop was less severe than the bleakest analysts views, partly helped by a modest demand recovery in the competitive Chinese market, where its refreshed Model Y has gained some traction.
Some investors welcomed the numbers, though with caution.
'You need two dots to draw a line. I don't think you can get too excited yet until you have some confirmation (of a demand recovery),' said Camelthorn Investments adviser Shawn Campbell, who personally holds Tesla shares. 'We've had so much bad news — almost any good news is going to help at this point.'
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