Topline
Tesla’s stock price plunged on Thursday, even after the company announced surging vehicle deliveries in its second quarter that cleared analyst expectations by tens of thousands of cars, possibly signalling sustained investor hesitancy even after sales recovered in Europe.
TSLA was down about 8% by 1 p.m. EDT on Thursday.
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Key Facts
Tesla delivered 480,126 vehicles in the April-June quarter, easily outperforming expectations of 406,000 and up from about 358,000 deliveries in 2026’s first quarter, according to an Securities and Exchange Commission filing ahead of the company’s second quarter financial results expected later in July.
Sales also largely recovered in Europe, rising a reported 77% in markets on the continent between January and May, according to data from the European Automobile Manufacturers’ Association.
Despite the positive signs, Tesla’s stock fell after markets opened on Thursday, and was down about 8% around 1 p.m. EDT.
At least one prominent investor has a bearish outlook on the Elon Musk-helmed electric vehicle manufacturer—Michael Burry, the investor profiled in “The Big Short” who famously predicted the subprime mortgage crisis, revealed Tuesday he took a short position in the company.
Crucial Quote
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level,” Burry wrote at the end of a post on his Substack published on Tuesday. Burry’s post was primarily detailing his analysis of what he sees as a semiconductor bubble and said nothing else about Tesla. Burry didn’t reveal how large his short position against the company was, and provided no other context about the bet.
Surprising Fact
Tesla stopped producing several of its higher end models this quarter, discontinuing its Model S and Model X vehicles and focusing on just three cars: the Model 3 sedan, the Model Y SUV and the Cybertruck. Model 3 and Model Y cars made up the clear majority of deliveries in the second quarter, according to Tesla’s data, while only 12,364 Cybertrucks were delivered.
Key Background
Tesla faced rising backlash in Europe after President Donald Trump won the 2024 election. Consumers fled from the company as Musk took more public political stances, such as backing German far-right party AfD prior to the German elections. Sales in Europe plummeted, falling almost 27% over the course of 2025, Reuters reported.
Forbes Valuation
We estimate Elon Musk’s net worth at $972.4 billion, making him the wealthiest person in the world. His net worth has fallen by over $14 billion on Thursday, as Tesla’s stock price drops and share prices for his newly public SpaceX remain flat. SpaceX’s collapsing share price on Wednesday cost Musk about $50 billion, bringing his net worth down and making him lose his status as the world’s first trillionaire.
Tangent
Tesla’s positive sales numbers come only days after the company’s electric semi truck was involved in its first recorded fatal crash. Two people in Nevada were killed after one of Tesla’s trucks crashed into a Volkswagen Beetle about 30 miles from Tesla’s gigafactory in the state. Details about the crash are still sparse, but the Lyon County Sheriff’s Office said preliminary reports “suggest the driver of the semi may have fallen asleep.”