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Tesla Q2 deliveries meet analysts’ estimates despite chip shortage, shares gain

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  • Shares up 3% on record vehicle deliveries
  • Deliveries of higher priced models fell

July 2 (Reuters) – Tesla Inc (TSLA.O) on Friday posted record vehicle deliveries for the second quarter that were in line with Wall Street estimates as the electric-car maker coped with a shortage of chips and raw materials.

Tesla delivered 201,250 vehicles in total during the second quarter. Analysts had expected Tesla to deliver 200,258 vehicles, according to Refinitiv data.

“Congrats Tesla Team on over 200,000 car built & delivered in Q2, despite many challenges!!” Musk said in a tweet.

Shares of the company were up 3% in early trading on Friday.

The numbers showed that strong deliveries of its Model 3 sedans and Model Y crossovers, its two lower priced variants, offset a drop in deliveries of higher-end Model S and X variants.

Tesla has been raising prices for its vehicles in recent months, which its billionaire boss, Elon Musk, blamed in May on “major supply chain price pressure”, especially raw materials. read more

He also said in early June that “Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it.”

Tesla sold 21,936 cars to Chinese customers in May, rebounding from a sales slump in April, but still well below March numbers. read more

MODEL S,X DELIVERIES FALL

Overall deliveries of its higher priced Model S and X cars fell to 1,890 during the April to June period, from a meager 2,020 the preceding quarter, Tesla said.

After delays, the company launched the Model S Plaid in June, a high-performance version of its Model S, starting at $129,990. read more

A Tesla Model S Plaid electric vehicle burst into flames on Tuesday while the owner was driving, just three days after the car was delivered. Tesla did not have an immediate comment when contacted by Reuters. read more

Total production in the second quarter rose about 14% to 206,421 vehicles from the first quarter.

Reporting by Akanksha Rana in Bengaluru and Hyunjoo Jin in Berkeley, Calif, Additional reporting by Subrat Patnaik; Editing by Sriraj Kalluvila, Saumyadeb Chakrabarty and Philippa Fletcher

Our Standards: The Thomson Reuters Trust Principles.

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Business

Tesla shares drop after muted Q1 results as a global chip crunch persists

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Shares of Tesla Inc (TSLA.O) fell more than 4% on Tuesday as its first-quarter earnings results failed to alleviate investor concerns about its lofty evaluation, as well as a prolonged global chip shortage and rising competition.

The electric car maker’s quarterly revenue made it barely past estimates, relying mostly on sales of environmental credits sold to other automakers and the liquidation of 10% of its $1.5 billion bitcoin investment.

“Tesla’s performance was OK but it wasn’t a Elon Musk slam dunk…I don’t think people are into Tesla because of bitcoin,” said Eric Schiffer, CEO of private equity Patriarch Organization, which has an underweight stance on Tesla.

“Investors are rejecting the stock short term,” he said, saying Tesla’s performance has fallen short of catching up its “astronomical valuation.”

Musk, the company’s CEO, did earn options payouts worth $11 billion based on targets reached by the company.

Shares of the automaker closed down 4.5% at $704.74, down more than 20% from its intraday high reached in January. They had surged more than 700% last year, making Tesla the world’s most valuable automaker.

Tesla posted record deliveries in the first quarter despite a global chip shortage that has slammed auto sector rivals. But analysts said a prolonged shortage of chips and batteries could threaten to dampen its growth prospect.

“A global shortage of computer chips is expected to limit production from all manufacturers in the immediate future, and Tesla won’t be exempt,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.

“Given the ongoing importance of its production ramp up, it may even be more heavily impacted.”

Regarding supply chain instability, Tesla Chief Financial Officer Zachary Kirkhorn said on Monday, “We believe that this landscape is improving, but it does remain difficult, and it’s an evolving situation.”

Roth Capital Partners said it holds a neutral rating on Tesla, saying that Tesla’s large premium “seems to rest on the specious assumption that the hundreds of EVs slated for launch by ’25 will all be flops.”

“Tesla does not operate in a vacuum,” it said in a report.

Our Standards: The Thomson Reuters Trust Principles.

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