Tesla beats delivery expectations as Europe rebound offsets U.S. weakness

Tesla said on Wednesday it delivered 480,126 vehicles in the second quarter, far above Wall Street expectations of about 406,000, as aggressive price cuts helped revive sales in Europe even while demand stayed softer in the United States. The company also said it produced 451,758 vehicles and deployed 13.5 GWh of energy storage products, a sign that Tesla’s growth story still rests on both cars and batteries.

The regional split was stark. In Europe, Tesla benefited from a broader rebound in battery-electric demand as higher fuel prices pushed more buyers toward plug-in models. The European Automobile Manufacturers’ Association said battery-electric car registrations in Europe rose 39.1% in May, and battery-electric cars accounted for 20% of the EU market through May, up from 15.3% a year earlier. That surge helped create room for Tesla to recover after a difficult stretch in the region, where sales had come under pressure.

June data showed the recovery widening across several markets. Tesla registrations more than doubled in France, rose 56% in Sweden, increased 39% in Denmark and fell 43% in Norway, while Italy also posted gains. Reuters said those numbers reflected a regional rebound that extended beyond one or two countries, even as performance remained uneven market to market.

The U.S. picture was weaker. Tesla’s domestic demand remained under pressure after the expiration of the $7,500 federal EV tax credit in September, a policy shift that removed a key support for buyers and intensified the price competition Tesla has used to defend volume. That tradeoff now sits at the center of the company’s recovery: lower prices can move metal, but they also squeeze margins and raise questions about pricing power in a crowded EV market.

Investors will get a clearer read on that balance when Tesla posts its second-quarter financial results on July 22. Those results should show how much of the delivery beat came from Europe’s turnaround, how much came from discounting, and whether the rebound translated into healthier profitability or simply more cars at lower margins.