Tesla Share Price: Tesla shares fell as much as 8 per cent on July 2, even after the company reported its strongest second-quarter delivery numbers on record, in a reaction analysts described as investors selling on the news rather than reacting to weak results.
The electric vehicle maker delivered 480,126 vehicles in the April-June quarter, up 25 per cent year-on-year and well above Wall Street’s consensus estimate of around 406,000 units. The figure also marked a 34 per cent jump from the first quarter of 2026, when Tesla delivered 358,023 vehicles. Vehicle production for the quarter stood at 451,758 units.
Despite the beat, shares dropped sharply through the trading day, at one point falling close to 8 per cent before paring some losses. If the decline holds, it would represent Tesla’s worst single-day stock performance in nearly a year.
Why the stock fell despite the beat
Several analysts pointed to the stock’s run-up ahead of the report as a key factor behind the sell-off. Tesla shares had risen roughly 13% over the four trading sessions preceding the delivery update, suggesting the market had already priced in a strong result. Gary Black of The Future Fund said on social media that investors had anticipated the beat.
Model 3 and Model Y vehicles accounted for the bulk of deliveries, at 467,762 units, or 97% of the total. Tesla delivered far fewer of its other models, including the Cybertruck, after discontinuing the Model S and Model X earlier this year to redirect factory capacity toward its Optimus robot programme.
Analysts also cited one-time tailwinds behind the delivery surge, including elevated gas prices linked to the conflict in Iran, which some said may have pushed consumers toward EVs. Cox Automotive’s Stephanie Valdez-Streaty said the boost was most visible in Europe and China, where fuel costs have risen sharply.
Energy business and what comes next
Tesla’s energy storage business deployed 13.5 gigawatt-hours in the quarter, up from 9.6 GWh a year earlier, though this fell short of some analyst estimates. Investor attention has increasingly shifted away from vehicle deliveries toward Tesla’s progress on Full Self-Driving, its Robotaxi service and the Optimus robot, according to multiple analysts covering the stock.
The stock remains down about 10 per cent for the year to date. Tesla’s formal second-quarter financial results, including revenue and profit margins, are scheduled for release on July 22.
Investor Michael Burry, known for his bet against the U.S. housing market before the 2008 financial crisis, disclosed this week that he had taken a short position in Tesla, though he did not specify the size of the bet.
