On Monday, Tesla (TSLA 0.66%) stock jumped 6.9%, driven by the electric vehicle (EV) pioneer's Sunday announcement of record vehicle production and delivery numbers for the second quarter of 2023. Tesla also announced the date on which it will release its financial results for the quarter.
Investors give considerable weight to the company's quarterly delivery numbers because sales are booked when customers take possession of a vehicle. Thus, deliveries are a key driver of revenue and earnings.
Record Q2 vehicle production and delivery numbers
In the second quarter, Tesla produced a total of 479,700 vehicles and delivered a total of 466,140 vehicles. The delivery number cruised by Wall Street's consensus estimate of about 448,600.
Production breakdown was 460,211 combined for Model 3 and Model Y, which are the company's newer and more affordable models, and 19,489 combined for Model S and Model X. Delivery breakdown was 446,915 for Model 3/Y and 19,225 for Model S/X.
Tesla's quarterly production number was up a torrid 86% from the year-ago period and 9% higher than the prior quarter. Its delivery number was up an impressive 83% year over year and 10% higher than the prior quarter.
Tesla's second-quarter vehicle production and delivery numbers represent a significant year-over-year acceleration over its first-quarter numbers. In Q1, the company's year-over-year vehicle production and delivery numbers grew 44% and 36%, respectively. In that quarter, it produced 440,808 vehicles and delivered 422,875 vehicles.
Along with the all-important quarterly delivery number, there was another notable positive in the data Tesla just released: The gap narrowed between the company's quarterly production and delivery numbers relative to the prior quarter. The Q2 gap was approximately 13,300, down from nearly 18,000 in the first quarter. This gap narrowing indicates improving efficiency and less buildup of inventory.
What drove the big increase in consumer demand for Tesla's vehicles?
When Tesla releases its Q2 results, investors will learn what CEO Elon Musk has to say about the catalysts behind the huge year-over-year increase in vehicle production and delivery numbers.
But it seems safe to opine that the main catalysts behind the boost in consumer demand for the company's vehicles are the federal tax credit for EVs and Tesla's recent vehicle price cuts. In addition, the company's recent multiple free-charging incentives for consumers taking possession of their vehicles by June 30 were also likely a factor.
Q2 earnings release date and Wall Street estimates
Tesla is slated to report its second-quarter results after the market close on Wednesday, July 19. Management will hold an earnings call at 5:30 p.m. ET.
Wall Street is currently modeling for Q2 revenue to jump 42% year over year to $24.08 billion and adjusted earnings per share (EPS) to edge up 4% to $0.79.
Given that Tesla's Q2 delivery number easily beat Wall Street's expectation, it's very possible that some analysts will soon upwardly revise, albeit probably just slightly, their revenue and earnings estimates for the quarter.
