Tesla surprises with better than expected car sales

Tesla has managed to surprise the market with better-than-expected car sales. The electric car manufacturer, led by Elon Musk, delivered nearly 444,000 vehicles in the three months ending June 30. This figure represents an increase of more than 14% from the previous quarter, although it is still down nearly 5% from the same period last year. Tesla has been grappling with a slowdown in demand, attributed to higher borrowing costs and increased competition. In an effort to attract buyers, Tesla has been slashing prices and announced plans to lay off more than 10% of its workforce earlier this year. At the start of the year, Tesla attributed its poor performance to supply shortages caused by shipping disruptions in the Red Sea and an arson attack at its factory in Germany. Analysts suggest that Tesla needs to refresh its lineup to fend off competition. The company began selling its Cyber Truck last year, but it remains a small part of its business. The mainstream Model 3 sedan, which dates back to 2017, is one of Tesla's primary offerings. Elon Musk, who is worth approximately $50 billion, has outlined an optimistic future for Tesla, emphasizing self-driving technology and automation. Despite concerns that demand for electric vehicles in the US has been weaker than anticipated, the global market for electric cars continues to grow. This year, more than one in five cars sold worldwide are expected to be electric, with nearly half of them in China and roughly a quarter in Europe. Dan Ives, an analyst at Wedbush Securities, believes that the worst is behind Tesla, noting signs of improvement in China. He pointed out that Tesla has undergone significant cost reductions to preserve its profitability. Ives expects Tesla's upcoming presentation on robotaxis in August to drive a new wave of growth. Following the news, Tesla's shares surged more than 6% in morning trade on Tuesday.