Tesla deliveries plunge 14% in latest quarter, and Elon Musk faces 2nd straight annual sales drop

Core Insights - Tesla is experiencing a significant decline in quarterly deliveries, with 384,122 vehicles delivered in Q2, down 13.5% from 443,956 units a year ago, indicating a potential second consecutive annual sales decline due to faltering demand and an aging vehicle lineup [1][10] - Despite the drop in deliveries, Tesla's shares rose by 3% as the decline was less severe than the most pessimistic analyst projections, which had estimated deliveries as low as 360,080 units [2][3] - The company has faced backlash over CEO Elon Musk's political stance, which has contributed to fears of brand damage in key markets like Europe and the US, leading to a 25% loss in stock value this year [3][10] Delivery and Sales Performance - Analysts had expected Tesla to report deliveries of approximately 394,378 vehicles, but the actual figure fell short, reflecting a broader concern about demand [2] - To counteract declining demand, Tesla refreshed its top-selling Model Y crossover, but this redesign caused a production halt and led to some buyers delaying purchases [4][10] - Achieving Musk's target of returning to growth would require Tesla to deliver over a million units in the second half of the year, a challenging goal given the current sales trajectory [11] Market Position and Future Prospects - Tesla's revenue and profit are heavily reliant on its core electric vehicle business, and much of its valuation is tied to Musk's ambitions for a robotaxi service, which has recently been rolled out in limited areas [6] - The company plans to produce a cheaper vehicle, expected to be a pared-down Model Y, but production has faced delays [7]