Shares of electric vehicle (EV) maker Tesla jumped over 10% on Tuesday, hitting the highest level in nearly six months after it reported quarterly deliveries that beat analysts’ estimates.
The electric carmaker delivered 443,956 vehicles in the three months to June 30, according to a statement. This indicates a 4.8% fall compared to the year-ago period and is up 14.8% from the previous quarter. Total production during the quarter reached 410,831 units.
Tesla was expected to deliver 438,019 vehicles on average during the second quarter, Reuters reported, citing analysts polled by LSEG.
The company delivered 422,405 Model 3 and Model Ys, and 21,551 units of other models, which include the Model S sedan, Cybertruck, and Model X premium SUV.
The market reacted positively to the news, sending Tesla shares up 10.2% to $231.26 as of Tuesday's market closing. The last time Tesla stock was at the $230 level was in January.
The EV maker does not provide its regional breakdown of sales, but Reuters reported, citing analysts, that better-than-expected sales in China and the US may have helped Tesla deliver stronger-than-expected results.
In April, the company made another round of price cuts in key markets like the US, China, and Europe. The company also offered loans with interest rates of zero or near 0% on car purchases in China and the US.
Tesla CEO Elon Musk said in April that the company “navigated several unforeseen challenges” like disruptions stemming from the Red Sea attacks and a factory arson incident in its plant in Germany, as well as the ramp-up of the updated Model 3 in Fremont during the first quarter.
Tesla halted most of the production at its German factory from January 29 to February 11 because of the issues in the Red Sea, a vital global shipping corridor. The company said the attacks in the area and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are affecting production in Grünheide.
“The significantly longer transport times create a gap in the supply chains,” Tesla said in a statement.
Major shipping companies suspended voyages via the Red Sea. AP Moller Maersk said in February that it would continue to avoid this trade route into the second half of the year, a sign that the ongoing tensions prompted by Houthi militant attacks in the region could pose longer-term challenges to the global shipping industry.
