Driving the surge was demand in Europe, where Tesla sales shot up 77%
Tesla beat Wall Street expectations in the second quarter by delivering 480,126 vehicles. That’s 25% more than the same period in 2025 and well above analysts’ forecast of 406,600 deliveries.
Wall Street had predicted roughly 400,000 deliveries.
The strong delivery numbers indicate Tesla may be emerging from a recent sales slump. Analysts also point to rising oil prices as a factor driving more consumers toward electric vehicles.
The entry-level Model 3 and Model Y drove the growth.
Driving the surge was demand in Europe, where the Elon Musk company’s sales shot up 77% in the first five months of 2026, according to the European Automobile Manufacturers’ Association.
It helped offset the decline in US sales, especially after the Trump administration ended the EV tax credit last year, which raised prices by $7,500.
Even with better-than-expected deliveries, Tesla shares fell about 7.5% on Thursday. The company still faces challenges, including executive controversies, stronger competition, and growing consumer interest in hybrid vehicles.