Tesla surpassed Wall Street expectations for second-quarter vehicle deliveries on Thursday, posting a record performance for the April-June period as a recovery in European demand helped offset continued softness in the North American market.
The stronger-than-expected delivery numbers indicate that Tesla’s core automotive business is regaining traction after two consecutive years of annual sales declines. The improvement also provides financial support for the company’s aggressive investments in autonomous driving and artificial intelligence, which underpin much of its roughly $1.6 trillion market valuation.
The electric vehicle maker has projected capital expenditure of more than $25 billion in 2026, nearly three times the $8.5 billion spent last year. The planned investments will be directed toward expanding AI infrastructure, battery manufacturing, Cybercab production and the development of its Optimus humanoid robots.
Tesla’s recovery in Europe was driven by a combination of favourable government incentives for electric vehicles, faster electrification of corporate fleets, rising fuel prices and a gradual easing of consumer backlash linked to CEO far-right political views last year.
The company delivered 480,126 vehicles during the second quarter, marking its highest-ever deliveries for the April-June period and representing an increase of about 25% compared with the same quarter a year ago. The figure comfortably exceeded analysts’ average forecast of 402,776 vehicles, according to data compiled by Visible Alpha.
Tesla produced 451,758 vehicles during the quarter. Deliveries exceeded production by more than 28,000 units, allowing the company to reduce inventory that had accumulated during the first quarter.
Sales of Tesla’s China-made electric vehicles have also strengthened this year, supported by production of the updated Model Y despite intense competition from BYD and several other domestic EV manufacturers.
Shares of the Austin, Texas-based company were down around 2% on Thursday after climbing 12% earlier in the week. Tesla also confirmed that it will announce its second-quarter financial results after markets close on July 22.
Market analysts said investor optimism had largely been reflected in the stock price ahead of the deliveries report, resulting in a relatively muted market reaction despite the stronger-than-expected numbers.
Earlier on Thursday, smaller electric vehicle rival also raised its full-year delivery forecast after reporting second-quarter deliveries that exceeded analysts’ expectations.
Rivian now expects 2026 deliveries between 65,000 and 70,000 vehicles, up from its earlier forecast of 62,000 to 67,000. It will need to deliver about 45,000 more vehicles in the second half of 2026 to hit the midpoint of its revised full-year target.
Tesla has continued expanding the availability of its Full Self-Driving (FSD) advanced driver assistance software across Europe, although the feature remains limited to a small number of countries. Analysts believe wider deployment in the coming months could further strengthen demand for the company’s vehicles.
The automaker has also broadened its robotaxi programme after launching a limited commercial service in Austin in June. Elon Musk has said Tesla plans to rapidly expand the autonomous ride-hailing service throughout 2026.
Meanwhile, production of the Cybercab—Tesla’s purpose-built autonomous vehicle designed without a steering wheel or pedals—is expected to accelerate later this year as the company advances its self-driving ambitions.