From the looks of it, shares are set to rise. Electric vehicle (EV) shipments and production grew both sequentially and year-over-year, easily beating analysts’ expectations.
More Tesla Shares of (NASDAQ: TSLA) fell Thursday after a report showed the company delivered 480,126 electric vehicles in the three months ended June and produced 451,758 vehicles. Most analysts were looking for deliveries of just over 400,000 units.
Did you miss Nvidia in 2009? This rare signal flashes again. In 2009, the signal to “double down” sounded for little-known chip maker Nvidia. For the first time in years, the same “Total Conviction” light is flashing for a company 1/100th the size of Nvidia. Continue “
Data source: Tesla. Author’s diagram.
It is important to note that strong deliveries offset stockpiling issues in the first quarter. The strong numbers confirm that not only can the company consistently produce cars in large quantities, but that its brand still enjoys some competitiveness. It simply wasn’t enough to satisfy investors.
But that’s not all.
Several stumbling blocks, each of which could trigger a rise in shares.
There are several theories about the fall of this stock. And they are all reasonable. All of them may have contributed to the sale as well.
The prevailing explanation is that US automakers Ford Motor Company And General Motors Both companies experienced severe downturns in their U.S. electric vehicle businesses in the second quarter, which also has clear bearish implications for Tesla.
Image source: Getty Images.
Things are not necessarily going as well abroad as you might think they should be. While the company doesn’t disclose regional divisions, the China Passenger Car Association says more than half of Tesla’s second-quarter deliveries were to China, where Tesla is doing well but not as well as its main EV rival. BID (OTC: BIDDY). In June alone, BYD delivered about 400,000 new energy vehicles to China, compared with 89,091 EVs produced by Tesla. What’s more, after BYD’s global shipments fell catastrophically in the first quarter to levels below Tesla’s, the Chinese company rebounded last quarter to deliver 557,090 Tesla units worldwide, surpassing Tesla’s numbers.
Then there’s the simple possibility that this is nothing more than a “buy the rumor, sell the news” event where the good news is already priced into the stock. Once the news is published, there will be nothing new to evaluate. The next step for recent buyers of this ticker will be to exit. To that end, Tesla shares rose 12% in just three days leading up to Thursday’s report, setting the stage for profit-taking.
Or maybe investors were simply trying to get their portfolios in order before U.S. exchanges closed for the three-day holiday weekend.
Don’t think about it
Regardless of the reason, Thursday’s significant selloff isn’t necessarily a big deal and certainly doesn’t change the stock’s overarching investment thesis. Tesla has always been a volatile stock, pushed by the ever-changing global electric vehicle market, the energy storage market and, soon, the market for artificially intelligent robots. You own this name for the long haul because it is the leading brand with the greatest potential to benefit from the continued growth of these industries. That’s why you pay a premium for it.
To that end, all the post-report noise and chatter aside, Tesla’s Q2 delivery and production numbers are exactly the kind of progress and resilience bulls want to see… at least on the EV front.
Did you miss Nvidia in 2009? This rare signal is flashing again
In 2009, the signal to “double down” sounded for little-known chip maker Nvidia. If you invested $5,000 then you’d be sitting on $2,529,759 Today.*
Now, for the first time in many years, the same thing Signal “Total Conviction” flashes for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with shares down 20% from their highs recently, the window for early entry is quickly closing.
Continue “
*Stock Advisor returns as of June 29, 2026.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in Tesla and recommends it. The Motley Fool recommends BYD and General Motors. The Motley Fool has disclosure policy.
Tesla’s solid second-quarter delivery report sent Elon Musk’s shares down 6%. What’s happened? originally published by The Motley Fool