Tesla Shares Sink 8% Despite Strong Q2 Delivery Beat

Tesla shares dropped about 8% on Thursday even after the electric vehicle maker reported second-quarter delivery figures that comfortably exceeded Wall Street expectations, highlighting continued investor caution despite signs of improving sales performance.

According to a filing with the Securities and Exchange Commission, Tesla delivered 480,126 vehicles during the April-to-June quarter. The total was well above analyst estimates of roughly 406,000 vehicles and marked a significant increase from approximately 358,000 deliveries recorded in the first quarter of 2026. The company is expected to release its full second-quarter financial results later this month.

Tesla also showed signs of recovery in the European market. Data from the European Automobile Manufacturers’ Association indicated that the company’s sales across European markets increased by 77% between January and May, suggesting demand has improved after a difficult period in the region.

Despite the stronger-than-expected delivery numbers, Tesla’s stock declined sharply after markets opened, trading around 8% lower by approximately 1 p.m. EDT.

Investor sentiment may also have been influenced by prominent investor Michael Burry, who disclosed earlier this week that he had taken a short position against Tesla. In a post published on his Substack on Tuesday, Burry wrote, “And finally I shorted Tesla at 416.22. Happy it jumped back to this level.” The post mainly focused on what Burry described as a semiconductor bubble, and he did not reveal the size of his Tesla short position or provide further details about the trade.

During the quarter, Tesla also reshaped its product lineup by ending production of its premium Model S and Model X vehicles. The company is now concentrating on the Model 3 sedan, the Model Y SUV, and the Cybertruck. Delivery data showed that the Model 3 and Model Y accounted for the vast majority of second-quarter shipments, while Tesla delivered 12,364 Cybertrucks.

Tesla has faced significant challenges in Europe since President Donald Trump’s victory in the 2024 U.S. election. The company experienced growing consumer backlash after CEO Elon Musk became increasingly active in politics, including his support for Germany’s far-right AfD party ahead of the country’s elections. Reuters previously reported that Tesla’s European sales fell nearly 27% throughout 2025.

Elon Musk’s estimated net worth now stands at $972.4 billion, keeping him the world’s richest person. His fortune declined by more than $14 billion on Thursday as Tesla shares fell, while SpaceX shares remained unchanged after their recent public listing. A sharp decline in SpaceX’s share price on Wednesday had already erased roughly $50 billion from Musk’s wealth, causing him to lose his status as the world’s first trillionaire.

The strong delivery report also comes shortly after Tesla’s electric semi truck was involved in its first recorded fatal accident. Two people were killed in Nevada when the truck collided with a Volkswagen Beetle about 30 miles from Tesla’s gigafactory. Authorities with the Lyon County Sheriff’s Office said preliminary findings suggest the semi-truck driver may have fallen asleep, though the investigation remains ongoing.