Tesla Posts Record Second-Quarter Deliveries as Europe Rebound Fuels Growth Outlook

Tesla second-quarter deliveries reached a record 480,126 vehicles, beating Wall Street expectations as stronger European demand offset weaker U.S. sales and raising hopes the electric vehicle maker could return to annual growth in 2026.

Europe recovery drives record deliveries

Tesla second-quarter deliveries totaled 480,126 vehicles during the April through June quarter, surpassing analysts’ average estimate of 402,776, according to Visible Alpha data. The company produced 451,758 vehicles during the same period, meaning deliveries exceeded production by more than 28,000 vehicles and helped reduce the inventory built up earlier this year.

The company credited improved performance in Europe after a difficult period last year. Analysts said higher fuel prices, government incentives for electric vehicles, expanding corporate fleet electrification, and easing consumer backlash tied to CEO Elon Musk’s political views contributed to stronger demand.

“I think the huge growth in Europe is the key driver for Tesla right now,” said Seth Goldstein, senior equity analyst at Morningstar. “U.S. sales still appear to be down, albeit less than the broader U.S. EV decline, while China is seeing small growth.”

Goldstein said the latest results make another annual decline less likely, adding, “I think it would be very hard to see a decline for the full year at this point.”

U.S. challenges continue despite new products

Tesla’s U.S. business remains under pressure following the removal of federal tax credits for electric vehicle purchases late last year. Analysts also said the company’s aging vehicle lineup continues to affect demand, although refreshed models have supported sales in China.

“We’re cautiously optimistic for some growth this year,” said Sam Fiorani, vice president at AutoForecast Solutions. He said lower-priced Model 3 and Model Y variants, along with financing incentives, are helping attract buyers despite concerns some consumers may have about Musk.

Freedom Broker senior analyst Dmitriy Pozdnyakov estimated Tesla’s U.S. sales likely declined by at least 10% during the quarter.

Tesla also introduced a six-seat version of the Model Y in the United States on Thursday. The longer-wheelbase sport utility vehicle previously helped increase deliveries in China and is expected to support demand in the U.S. market.

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Tesla said it will report full second-quarter financial results on July 22 after markets close.

The company expects to spend more than $25 billion on capital expenditures in 2026, nearly triple last year’s spending, as it expands artificial intelligence infrastructure, battery production, Cybercab manufacturing, and Optimus robot development.

Tesla has also continued expanding its Full Self-Driving driver assistance software in Europe, although the technology is available in only a limited number of countries. Analysts expect broader availability in the coming months to support vehicle demand and further strengthen Tesla second-quarter deliveries momentum in future quarters.

The company recently expanded its robotaxi operations after launching a limited commercial service in Austin in June. Musk has said Tesla plans to expand the service significantly through 2026, while production of the Cybercab autonomous vehicle is expected to increase later this year.

“The stock price is still riding a bit of a rollercoaster,” said David Wagner, head of equity at Aptus Capital Advisors, a Tesla shareholder. “Investors are hyped about the bounce-back, but the big money is still waiting to see if Tesla can actually deliver on Elon Musk’s promises around AI, robotaxis, and self-driving tech.”

Shares of Tesla were down about 7% in midday trading Thursday after rising 12% earlier in the week.