(Reuters) -Tesla reported a sharper-than-expected fall in second-quarter deliveries on Wednesday, as intense competition and backlash against CEO Elon Musk’s political stance hit global demand for its aging electric-vehicle lineup.
The electric automaker said it delivered 384,122 vehicles in the second quarter, down 13.5% from 443,956 units a year ago. Analysts expected it to report deliveries of about 394,378 vehicles, according to an average of 23 estimates from Visible Alpha.
Tesla’s plummeting deliveries in a steadily growing global EV market come despite Musk saying in April that sales had turned around.
Tesla refreshed its top-selling Model Y crossover earlier this year to boost demand, but the redesign forced a production halt and prompted some buyers to delay purchases in anticipation of the updated version.
Most of Tesla’s revenue and profit come from its core EV business and much of its trillion-dollar valuation hangs on Musk’s big bet on turning its vehicles into robotaxis.
Tesla last month rolled out a robotaxi service in limited parts of Austin, Texas for a select group of invitees and with several restrictions, including having a safety monitor in the front passenger seat.
Its shares, which have shed more than 25% this year, rose 7% in premarket trading.
Tesla had said it would start producing a cheaper vehicle — expected to be pared-down Model Y by June end. Reuters had reported in April it was delayed by at least a few months.
While a cheaper model might help bolster sales, Wall Street expects a second consecutive annual sales decline this year.
To achieve Musk’s target of returning to growth this year, Tesla would need to hand over more than a million units in the second half – a record and a tough challenge, according to analysts, despite typically stronger sales in the second half.
(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Arun Koyyur)
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