Investing.com -- Tesla (NASDAQ:TSLA) has reported second-quarter electric vehicle deliveries that were better than expected, and well above the number of vehicles produced, pointing to improved demand that may help ease concerns around excess inventory for its flagship Model 3/Y.
The company's deliveries, a close approximate to sales, were 443,956 in the second quarter, topping Wall Street estimates of around 438,000, stoking hopes that the worst of a downturn in the wider EV market could be in the rearview mirror.
Analysts at Wells Fargo said that recent financing and leasing promotions likely spurred on demand, adding that the result is "surprising" given disappointing recent performance updates from Tesla.
However, they flagged that "[t]he [first half] pace implies a [roughly] 1.66 annual run rate, which would be down 8% from 1.8 million in 2023."
As a result, the pace "still implies downside" for Tesla's 2024 fiscal year, the analysts said. They retained an "Underweight" rating of the stock.