Despite exceeding delivery expectations, Tesla drops 8%
Even after the firm reported a rise in car deliveries for the second quarter—which beat analysts’ projections by tens of thousands of vehicles—Tesla’s stock price fell on Thursday. Potentially indicating ongoing investor resistance even after European sales recovered.
According to a filing submitted to the Securities and Exchange Commission ahead of the company’s second-quarter financial results, which are anticipated by the end of July. Tesla delivered 480,126 vehicles in the April-June quarter, significantly exceeding expectations of 406,000. Representing an increase from roughly 358,000 deliveries in the first quarter of 2026.
According to figures from the European Automobile Manufacturers’ Association, sales in Europe also experienced a notable recovery. Increasing 77% in the continent’s markets between January and May.Even after the firm reported a rise in car deliveries for the second quarter. Which beat analysts’ projections by tens of thousands of vehicles—Tesla’s stock price fell on Thursday. Potentially indicating ongoing investor resistance even after European sales recovered.
Despite the encouraging indications, Tesla’s shares dropped almost 8% at 1 p.m. EDT on Thursday when markets opened. At least one well-known investor has a negative opinion of Elon Musk’s electric car company: Michael Burry, the investor featured in «The Big Short» who famously foresaw the subprime mortgage catastrophe, disclosed on Tuesday that he had taken a short position in the business.
Tesla and high-end models
Tesla stopped producing several of its high-end models this quarter, discontinuing the Model S and Model X and focusing solely on three vehicles: the Model 3 sedan, the Model Y SUV, and the Cybertruck. The Model 3 and Model Y accounted for the vast majority of deliveries in the second quarter, according to Tesla’s data. While only 12,364 Cybertrucks were delivered.
Tesla faced a growing backlash in Europe following President Donald Trump’s victory in the 2024 election. Consumers turned away from the company as Musk took a more public political stance. Such as supporting Germany’s far-right AfD party ahead of the German elections. Sales in Europe plummeted, falling nearly 27% throughout 2025, according to Reuters.
