Tesla produced more vehicles than it delivered in Q2

Tesla Inc (NASDAQ: TSLA) is up 6.0% in premarket trading after reporting deliveries and the number of vehicles it produced in the second quarter.

Tesla beats estimates for Q2 deliveries

• Deliveries went up 83% year-on-year to 466,140
• Produced 479,700 vehicles versus 258,580 a year ago

Both metrics came in ahead of Street expectations as well as the previous quarter numbers. In Q1, Tesla had delivered 422,875 vehicles and produced 440,808 in total.

Roughly 96% of the vehicles the Nasdaq-listed firm delivered in Q2 were its Model 3 sedan and Model Y crossover, as per the press release – both are now eligible for full tax credit in the United States under the Inflation Reduction Act.

At writing, shares of the Austin-headquartered firm are up more than 150% for the year.

Citi sees downside in Tesla stock to $215

The multinational automaker that’s scheduled to report its second quarter financial results on July 19^th does not reveal numbers for specific models or regions. Last month, Tesla confirmed a partnership with peer Rivian Automotive as Invezz reported here.

It’s the fifth quarter in a row for Musk & Co to have reported a higher number of vehicles produced compared to vehicles delivered. According to Citi analyst Itay Michaeli:

Growing spread between production and deliveries will likely maintain focus on potential for further pricing pressure in Q3. The flow-through will likely depend on Q2 margin outcome.

His $215 price objective on Tesla stock suggests a whopping 23% downside from here. Analysts had forecast the EV giant to deliver 445,924 vehicles in its second financial quarter.