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Tesla’s deliveries jumped 25 per cent in the second quarter, far exceeding market expectations, as rising fuel prices from the Middle East conflict boosted sales of its electric vehicles in Europe.
The US carmaker delivered 480,126 vehicles in the three months to the end of June, up from 384,122 in the same period last year and well above analysts’ forecasts of 404,000.
Tesla lost its crown as the world’s biggest electric-car maker to China’s BYD last year amid a consumer backlash against chief executive Elon Musk’s political activism.
But its sales in the UK and Europe have recovered with new registrations increasing 57 per cent year on year to 118,068 units during the first five months of 2026, according to European car industry body Acea. Still, its 2 per cent share in the region remained below BYD’s 2.3 per cent share.
Despite the strong recovery in the latest quarter, BYD remained ahead of Tesla with the Chinese group selling roughly 867,000 electric vehicles in the first six months of the year, compared with 838,149 vehicles for Tesla.
Tesla formally ended production of its premium S and X models earlier this year as Musk pivots the group’s focus and investments to robotics and artificial intelligence.
Tesla will continue to sell its Model 3 and Model Y vehicles, while Musk has said the company is working on a new version of its Roadster sports car. Tesla also began mass production of its long-awaited Semi Truck in April, as it seeks to accelerate the shift away from diesel trucks.
“Tesla has not surprised to the upside to this degree in a while, a healthy sign the auto business is here to stay,” said William Blair analyst Jed Dorsheimer.
Improving demand in Europe as well as in China has helped offset Tesla’s weak performance in the US where sales have been hit by the end of EV tax credits and President Donald Trump’s rollback in regulations to cut vehicle emissions.
Ahead of the announcement, data group Cox Automotive had forecast Tesla’s sales in the US declining by 20 per cent year on year in the second quarter.
In April, the Netherlands became the first European country to approve the use of Tesla’s full self-driving technology — which still requires humans to sit in the driver’s seat and pay full attention despite its label.
With sales of its EVs facing intense competition from Chinese as well as western rivals, Tesla is betting its future growth on the global expansion of its autonomous robotaxis, although only a small number are operating in Texas.
Despite the strong delivery data, Tesla shares fluctuated on Thursday, falling about 7 per cent after rising nearly 2 per cent.
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