NAGA : Tesla ($TSLA) Announces Q2 Deliveries. What Impact Does This Have on Tesla stock?

Tesla (TSLA) has disclosed its Q2 production and delivery numbers, which were basically in line with market expectations. However, the figures reported marked the business's first declining quarter in a long time.

While the majority of the auto sector experienced a significant drop in deliveries in 2020 due to the pandemic and ensuing chip scarcity, Tesla was able to grow at an astounding rate. In fact, from 2020 till 2022 Q1, Tesla achieved nine consecutive quarters of delivery growth, making it the only volume producer in the auto industry.

Tesla Q2 2022 Production and Delivery Results

In Q2, Tesla produced 258,580 vehicles, of which 254,695 were delivered. Deliveries, heavily watched by the industry as a gauge for sales, were predicted to be in the 250K range after Wall Street analysts' predictions had been revised downward in recent weeks due to worries about COVID shutdowns in China. As a result, Tesla was anticipated to deliver roughly 304K vehicles for the quarter before the most recent estimate reductions.

According to Tesla, Q2 production and deliveries occurred amidst ongoing supply chain problems and plant shutdowns beyond their control. However, in some good news for Investors, Tesla also revealed June was the "highest vehicle production month in Tesla's history," hinting at a potentially successful Q3. This is good news for the market as it appears Tesla may have finally overcome the problems afflicting the Shanghai gigafactory, which was shut down for most of April and took some time to ramp up to pre-shutdown levels, based on the comment regarding June production.

What Does The Report Mean for Investors?

Tesla recording its highest vehicle production in the company's history despite production being affected by the stoppage of Tesla's Shanghai manufacturing for many weeks owing to covid-related public health orders and supply chain snarls that were made worse by Russia's invasion of Ukraine, shows strength from the company and hints a potential success in production for Q3. Tesla delivery numbers represented sales growth of 26.5% YoY. With plans to optimise its Texas and Berlin unit to produce more vehicles and the Shanghai unit resuming full operation, it does seem like a good time for investors as they head into Q3.

Tesla will release its full Q2 results after the market closes on Wednesday, July 20, which would also be another key indicator for Investors.

Current price of $TSLA stocks

Tesla stock rose 1.24% to $681.79 after the report of Q2 deliveries, and this is the current trading price. The price rise ended four consecutive days of losses.

A monthly chart of $TSLA as of the end of Friday 01/07/22

Conclusion

Tesla is a strong brand in the auto sector, and the slight decline in its Q2 production and delivery results is proof that the brand will still thrive despite harsh economic conditions. Tesla has restructured and is looking into new ways of cushioning the economic effect of the previous quarter. As a result, investors can go to sleep knowing their money is in safe hands.

Summary

• Tesla reports second-quarter vehicle production and delivery numbers for 2022.
• Parts shortages, supply chain snarls, and Covid restrictions forcing China's Shanghai factory to stop or operate just partially for weeks hindered Tesla during the period ending June 30, 2022.
• Tesla delivery numbers represented sales growth of 26.5% YoY after the company delivered 201,250 vehicles in the second quarter of 2021.

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