Tesla Global Sales Fall for Second Straight Quarter

Tesla global sales fell for the second quarter despite price cuts and low-interest financing offers, another sign of weakening demand for the company’s products and electric vehicles overall.

The Austin, Texas, company said Tuesday that it sold 443,956 vehicles from April through June, down 4.8% from 466,140 sold in the same period a year ago. However, the sales were better than the 436,000 that analysts had expected.

Stock Market Impact:

The better-than-expected deliveries pushed Tesla’s stock up 10% on Tuesday. Although the stock is down about 7% so far this year, it has nearly erased larger losses from prior months.

Tesla shares had been down more than 40% earlier in the year but are up more than 60% since hitting a 52-week low in April.

Market Trends and Challenges:

Demand for EVs worldwide is slowing, but it is still growing for most automakers. With an aging model lineup and relatively high average selling prices, Tesla has struggled more than other manufacturers.

Despite these challenges, Tesla retained the title of the world’s top-selling electric vehicle maker. For the year’s first half, Tesla sold 830,766 electric vehicles worldwide, handily beating China’s BYD, which sold 726,153 EVs.

Inventory and Competition:

Tesla also sold over 33,000 more vehicles during the second quarter than it produced, which should reduce the company’s inventory on hand at its stores.

Tesla’s sales decline comes as competition increases from legacy and startup automakers trying to nibble away at the company’s market share. Most other automakers will report U.S. sales figures later Tuesday.

Tesla did not explain the sales decline, a harbinger of what to expect when it posts second-quarter earnings on July 23.