Tesla beat Wall Street estimates for second-quarter deliveries on Thursday, posting a record for the period as demand recovery in Europe outweighed continued weakness in North America.
The strong data suggests Tesla’s core auto business is regaining momentum after two straight annual sales declines, providing the spending cushion it needs to fuel its ambitions in autonomous driving and artificial intelligence – key drivers of the company’s roughly $1.6tn value.
Tesla expects to spend more than $25 billion in capital expenditures in 2026, nearly triple the $8.5 billion last year, to expand AI infrastructure, battery production, cybercab manufacturing and Optimus robots.
“I think huge growth in Europe is the key driver for Tesla right now. US sales still look weak, albeit less than the broader US EV decline, while China is seeing smaller growth,” said Seth Goldstein, senior equity analyst at Morningstar.
Tesla’s recovery in Europe has been helped by government EV incentives, accelerating corporate fleets, higher fuel prices and a softening consumer response to CEO Elon Musk’s far-right politics last year.
The company delivered 480,126 vehicles in the April-June period, a second-quarter record and up nearly 25 percent from a year ago, handily beating analysts’ average estimate of 402,776 vehicles, according to Visible Alpha data.
Tesla produced 451,758 vehicles during the quarter. Deliveries exceeded production by more than 28,000 vehicles, leading the company to reduce manufactured inventory during the first quarter.
Despite fierce competition from BYD and other domestic automakers, sales of the company’s China-made EVs have grown this year, helped by the production of the latest Model Y.
Earlier in the day, smaller rival Rivian raised its annual delivery forecast and beat estimates for second-quarter deliveries.
Tesla continues to release its “Full Self-Driving” (FSD) advanced driver assistance software in Europe, although it is only available in a handful of countries. Analysts expect wider availability to support demand in the coming months.
The company expanded its Robotaxis operations after launching a limited commercial service in Austin in June. Musk has said that the company plans to rapidly expand the service by 2026.
Production of the CyberCab, Tesla’s purpose-built autonomous vehicle without pedals or a steering wheel, is expected to ramp up later this year.
