Tesla Q2 Deliveries: A Nuanced Story Despite Disappointing Numbers

Tesla's Q2 delivery numbers fell short of expectations, with 384,122 vehicles delivered, down 13.5% YoY. However, Wedbush analyst Daniel Ives sees this as a positive, citing strong demand for the refreshed Model Y in China and a path to accelerated growth in the coming years. Ives remains bullish on Tesla, urging investors to "keep on buying."

Tesla reported 384,122 vehicle deliveries in the second quarter of 2025, a 13.5% year-over-year decline from the same period last year [1]. The company delivered 443,956 vehicles in the second quarter of 2024 and 336,681 in the first quarter of 2025. Despite the decline, Wedbush analyst Daniel Ives remains bullish on Tesla's prospects, citing strong demand for the refreshed Model Y in China and a path to accelerated growth in the coming years [2].

Ives noted that the delivery number came "better than feared," attributing the performance to the success of the Model Y refresh cycle in the quarter. He also pointed to signs of a rebound in China, which has been a critical market for Tesla [2]. Ives reiterated his outperform rating and a price target of $500 for Tesla stock, urging investors to "keep on buying" [2].

The second-quarter numbers reflect the broader challenges Tesla faces, including intensifying competition from Chinese automakers offering newer and cheaper electric vehicle (EV) models, as well as political backlash against CEO Elon Musk [1]. Musk's involvement in U.S. politics, including his support for former President Donald Trump and his criticism of the recent tax and spending bill, has weighed on Tesla's reputation and impacted sales [1].

Despite the current headwinds, Tesla's remarkable transformation from a niche electric car manufacturer to a technology powerhouse showcases the potential for revolutionary change in traditional industries. The company's focus on autonomous driving technology and humanoid robotics, as seen in its robotaxi pilot in Austin, Texas, and plans to deploy thousands of Optimus robots in factories by late 2025, signals a strategic pivot away from traditional car sales [2].

References:
[1] https://www.cnbc.com/2025/07/02/tesla-tsla-q2-2025-vehicle-delivery-and-production-numbers.html
[2] https://www.barchart.com/story/news/33147776/dear-tesla-stock-fans-mark-your-calendars-for-july-2