Tesla Q2 Vehicle Deliveries Set to Rebound with Europe Demand Surge
Overview of Tesla's Second Quarter Vehicle Deliveries
June 30 (Reuters) - Tesla is expected to report a 5% rise in vehicle deliveries on Thursday for the second quarter.
European Demand Drives Growth
The gain is likely to stem from higher demand in Europe, where a sharp jump in fuel prices has pushed consumers to choose battery-powered cars.
Factors Influencing European Demand
• Rising fuel prices driven by the Iran war are boosting demand for new and used electric vehicles across Europe
• Recovery in Europe follows a year of plummeting sales in the region in 2025 with a backlash against CEO Elon Musk's far-right political rhetoric.
Potential Impact of Full Self-Driving (FSD) Rollout
• Analysts say the rollout of Tesla's Full Self-Driving (FSD) advanced driver assistance system could boost demand in Europe, although the software has so far been allowed in only a handful of countries. An EU vote on a broader rollout is expected later this year.
Upcoming Sales Data Releases
• Several countries across Europe are expected to report monthly and quarterly automotive sales figures on Wednesday
Regional Performance Breakdown
China and North America Trends
While demand in China is expected to be stable, U.S. sales are still pressured by the expiry of the $7,500 Biden-era federal EV tax credit in September.
Wall Street and Analyst Expectations
• Wall Street expects Tesla's EV deliveries in the June quarter to rise to 402,780 vehicles, according to 20 analysts polled by Visible Alpha. That is a 4.9% rise year-over-year and a 12.5% jump compared with three months ago.
• Deutsche Bank expects the largest regional growth to come from Europe at nearly 40%, followed by China at 3% and a slump of 21% from the prior year in North America.
• Tesla does not detail regional deliveries.
Sales Strategies and Product Offerings
Efforts to Boost Sales
• In an effort to boost sales, Tesla over the past year has launched lower-cost versions of its Model 3 and Model Y vehicles
Impact of Lower-Cost Models
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Cynthia Osterman)
