Tesla stock surged 27% in two days following their impressive second-quarter deliveries report on Friday, causing short sellers to incur a hefty $3.5 billion loss in two days, as reported by S3 Partners.
The eight-day streak added more than $200 billion to the company’s value.
Better-than-expected deliveries
The EV maker outpaced Chinese competitor BYD in Q2 deliveries.
Tesla exceeded expectations by delivering 443,956 vehicles in Q2, beating Wall Street’s anticipated 439,000 units and marking a 14.8% increase from the previous quarter’s deliveries.
But the deliveries are nearly 5% less than in the same period last year.
To boost sales amid competition and an aging product lineup, Tesla offered attractive deals such as a three-year, 2% APR financing option for buyers of its Model 3 and Model Y in the US.
Earlier in 2024, Tesla faced challenges from price cuts impacting profits. Softer demand for EVs added to the company’s woes, resulting in its first annual decline in deliveries since 2020. Since its April low, Tesla’s stock has surged 73%, nearing recovery from its earlier losses.
However, the company also confronts growing competition from Chinese rivals and traditional automakers entering the EV space.
Looking ahead, Tesla aims to attract budget-conscious buyers with cheaper EV models while advancing investments in autonomous vehicles and humanoid robots.
Investors await Tesla’s second-quarter results later this month, anticipating updates on new product launches, including CEO Elon Musk’s unveiling of a new robotaxi model on August 8.
Meanwhile, Tesla’s market cap remains under $800 billion.